In the latest effort to restore its tarnished image following a stock manipulation scandal involving diplomats, the foreign ministry said Monday that it will set up a committee to deliberate press statements before their release.

Wrapping up a months-long probe, state auditors concluded late last month that Kim Eun-seok, the ministry‘s ambassador for energy and resources, had played a role in inflating the stock prices of CNK International by deliberately exaggerating the volume of diamond reserves in a Cameroon mine developed by the KOSDAQ-listed company.

The scandal was centered on a fallacious official press statement released in December 2010. The auditors found that Kim encouraged ministry officials to issue the press release, which dramatically overestimated the volume of diamond reserves.

The accusations also highlighted lax practices of deliberation when the ministry issued a press statement.

“In the aftermath of the stock manipulation case linked to CNK International, the ministry decided to establish a deliberation committee for press materials,” it said in a report to the National Assembly.

A key task for the committee will be to assess whether a press statement would include information sensitive to stock prices or business interests of companies, the report said.

The 2010 statement apparently helped shares of CNK jump more than fivefold in 16 trading days. Auditors found that relatives and associates of Ambassador Kim pocketed financial gains by investing their money in CNK shares during the period. (Yonhap News)