Several high-ranking South Korean officials and officials of the CNK International company became the subjects of the investigation received wide publicity in South Korea, Radio France International reports.
The suspects are accused of deliberately overstating the potential of the diamond mine Mobilong in Cameroon in order to obtain extra profits in the stock market.
Direct violation of the law took place in December 2010, when CNK International has received a license to develop the mine in Cameroon. Then on the wave of euphoria in the government of South Korea's the reserves of the mine were estimated at 420 million carats of diamonds, which is about 17 times greater than its real potential.
After that, the value of shares CNK International jumped 4.6 times in 16 days. However, very quickly appeared doubts about the real potential Mobilong mine and suspicion immediately fell on some South Korean officials, who are accused of obtaining personal benefits from over-estimate the reserves.
In January of this year South Korean authorities have stopped the powers of the Natural Resources Ambassador Kim Eun-Sok, which, according to investigators, played major role in this fraud and gave the false estimation of the mine’s potential. Members of the Yun Sok’s family purchased securities of the CNK International before the estimation of reserves Mobilong’s reserves was announced
As for the head of the company, which is also in on the list of suspects, according to investigators, a transaction in shares brought him the order of 55 million euros.
South Korean prosecutors have promised to make public the names of some others top suspects in the case of "diamond" fraud, including the former deputy of one of the ministers.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
Exclusive
Sarine’s David Block: Diamond Industry at Standstill Until Chinese Demand Returns
David Block is CEO of Israel’s Sarine Technologies and has served in the position since 2012. In this exclusive interview for Rough and Polished, Block gives his opinion on the leading issues affecting today’s diamond trade.
11 september 2024
Dr M'zée Fula Ngenge: Demand for considerable-sized diamonds stronger than ever
The African Diamond Council (ADC) chairperson Dr M'zée Fula Ngenge told Rough & Polished’s Mathew Nyaungwa in an exclusive interview that although overall global diamond prices have been somewhat soft, the demand for considerable-sized diamonds...
02 september 2024
Amplats sees prospects as a standalone company
Anglo has revealed its plans to demerge Anglo American Platinum (Amplats), which has operations in South Africa and Zimbabwe, to optimise shareholder value. Rough&Polished contacted Amplats to comment on this and other issues but was referred...
19 august 2024
WFDB President Yoram Dvash Remains Confident Despite Global Diamond Challenges
Yoram Dvash is President of the World Federation of Diamond Bourses (WFDB) having been elected in 2020. He found time in his busy schedule to speak to Rough&Polished about the state of the diamond industry around the world and some of the major...
12 august 2024
Lyudmila Vysotskaya: Amber is a mystical stone, a living substance
Lyudmila Vysotskaya is a Kaliningrad-based amber artist and designer, expert, chairwoman of the Amber Academy and member of the Creative Union of Artists in Decorative and Applied Arts. This summer, visitors could admire the art works by Lyudmila Vysotskaya...
30 july 2024
