Police officer relieved of duty over stock manipulation scandal

A senior police officer has been temporarily relieved of his duty for his alleged links with a scandal-ridden company involved in a diamond mining project in Cameroon, officials said Saturday.

The officer, whose name was not released, received 100,000 shares of CNK International in 2009 by investing 63 million won

(US$56,000) in the recapitalization of the mineral development company involved in a diamond mining project in Cameroon.

The officer sold all of his CNK shares in December 2010, soon after South Korea's Foreign Ministry issued a press release to announce the company's winning bid for the diamond development project in the African country.

The Foreign Ministry's press release was later found to have been exaggerated, prompting state investigators to launch an investigation.

The police officer, identified as a high school friend of the head of CNK, was said to have reaped a profit of about 500 million won through the transactions.

The police move came a day after Kim Eun-seok, the foreign ministry's ambassador for energy and resources, was relieved of his post over allegations that he played a key role in the stock manipulation scandal.

CNK's stock prices shot up more than five times after the ministry issued the press release on the company's winning bid.

Some of Kim's relatives are among those suspected of having pocketed large profits in connection with the case.