SEOUL-- Prosecutors on Tuesday questioned the chairman of Deutsch Motors Inc., a BMW car dealer in South Korea, over allegations of manipulating the company's stock price.

Chairman Kwon Oh-soo appeared for questioning at the Seoul Central District Prosecutors Office over suspicions of sharing insider knowledge with acquaintances in order to boost Deutsch Motors' stock prices.

Kwon was suspected of sharing business information favorable to the company, such as securing new investment from overseas private equity funds, to induce purchases of Deutsch Motors' stocks and later placing fake buying bids using his stock account to jack up the prices.

He was also suspected of mobilizing influential market players and contacting stock companies and analysts to stir up market buzz around the company and promote purchases.

Kwon and his partners are alleged to have induced investors to purchase 15.99 million stocks worth 63.6 billion won (US$54.2 million) from December 2009 for about three years.

The probe was launched after prosecutors received a complaint that Kim Keon-hee, the wife of former Prosecutor General Yoon Seok-youl, was involved in the alleged stock manipulation case in Deutsch Motors. Yoon is now a leading opposition presidential candidate.

Two suspected accompliceswere indicted on charges of violating financial investment laws last week.

Prosecutors have also found circumstantial evidence suggesting the involvement of Kwon's family in alleged embezzlement and breach of trust and raided his home and his wife's office last month.

Source: Yonhap News Agency