Conscious of Fairness Concerns:
"All Fund Tracking Data Handed Over to the Prosecution"
"MBK and Homeplus, Evidence Secured of Advance Rehabilitation Plans...
Criticism Over Lack of Self-Rescue Efforts"
On April 24, Lee Bokhyun, Governor of the Financial Supervisory Service, stated that during the investigation into the alleged stock price manipulation involving Sambu Construction, no evidence was found implicating Kim Keonhee, wife of former President Yoon Sukyeol, or Lee Jongho, former CEO of Black Pearl Investment. He emphasized that all details of the investigation had been handed over to the prosecution without exception, saying, "Now it is the prosecution's turn." Regarding the Homeplus case, he also confirmed that concrete evidence had been secured showing that major shareholder MBK Partners and others had been planning to file for corporate rehabilitation well in advance, and that this evidence had been referred to the prosecution.
Conscious of Fairness Concerns: "All Fund Tracking Data Handed Over to the Prosecution"
At a briefing on capital market issues held at the Financial Supervisory Service in Yeouido that morning, Governor Lee said, "We conducted a broad investigation into suspicions that certain high-profile individuals were involved in Sambu Construction stock price manipulation, but so far we have not found anything that would warrant a criminal complaint." Previously, the Securities and Futures Commission of the Financial Services Commission had filed a complaint with the prosecution against more than ten individuals, including former and current de facto owners and CEOs of Sambu Construction, on charges of violating the Capital Markets Act's prohibition on unfair trading. However, Mrs. Kim and her account manager, former CEO Lee, were not among those referred for prosecution.
Governor Lee explained, "We deployed more personnel than usual for this investigation and thoroughly traced all fund flows. We expanded the scope of the investigation to include all accounts that could be reasonably suspected, such as those with significant gains or those that engaged in large-scale buying or selling of shares. We did our utmost, within the authority of the Financial Supervisory Service, to address all suspicions raised."
He added, "All fund tracking data related to the individuals in question, as well as documents on the acquisition and conversion of convertible bonds (CB) by Wellbiotech, an affiliate of Sambu Construction and related to the accused, have been handed over to the prosecution. This will allow the prosecution, with its high level of investigative expertise and capability, to objectively review the appropriateness of the financial authorities' judgments from a third-party perspective." He reiterated, "Now it is the prosecution's turn." By doing so, he drew a clear line, indicating that, amid suspicions over fairness due to his relationship with former President Yoon, he would seek verification from the third-party prosecution.
Regarding media reports that the illicit gains from the Sambu Construction stock price manipulation ring, previously estimated at around 10 billion won, had reached 66 billion won, Governor Lee said, "At this time, it is difficult to confirm that." When asked whether face-to-face or written investigations had been conducted on specific individuals, he replied, "It is difficult to specify who, but we directly investigated various individuals," and added, "Since the prosecution's investigation is ongoing, it is difficult to specify the timing of investigations into particular individuals." He also confirmed that the Wellbiotech case, which involved similar allegations and arose during the process of filing complaints against those suspected in the Sambu Construction case, had also been referred to the prosecution.
"MBK and Homeplus, Evidence Secured of Advance Rehabilitation Plans...No Self-Rescue Efforts" Criticism
Regarding the Homeplus case, which was recently fast-tracked to the prosecution, Governor Lee said, "Homeplus and MBK claim they were unaware of the credit rating downgrade in advance, but we have secured concrete evidence that they were aware beforehand and had been planning to file for corporate rehabilitation for a considerable period."
He explained, "We will continue to operate the task force (TF) at least until the end of May to actively cooperate with the prosecution's investigation. At the same time, we plan to continue to investigate MBK and others, as well as conduct accounting audits of Homeplus, to clarify ongoing allegations of illegal conduct." If it is ultimately confirmed that MBK proceeded with issuing short-term bonds while preparing for corporate rehabilitation, thereby passing losses onto investors, this would constitute 'fraudulent unfair trading,' similar to the past Dongyang·LIG incidents.
Governor Lee was particularly critical, stating, "Judging by the actions of MBK and Homeplus after filing for rehabilitation, it seems that the roles of debtor, major shareholder, and creditors have been reversed." He pointed out, "Despite repeatedly announcing that they would pay trade creditors normally, delays in oversight have caused ongoing anxiety among suppliers. Since March, they have unilaterally demanded rent reductions from landlords without paying rent, forcing sacrifices on suppliers, landlords, and creditors, while appearing to evade their own responsibilities. This is a situation where previously expressed concerns are becoming reality."
He continued, "If this situation drags on into May or June, there is a risk that, during the court's process of seeking agreement on the rehabilitation plan, creditors and others may paradoxically be blamed for delays in normalization and pressured to make concessions." He called on MBK Partners to take effective and sincere action to resolve the situation.
Regarding Hanwha Aerospace's rights offering application, for which corrections had been requested twice previously, he stated, "If a revised registration statement is submitted again, we will promptly and thoroughly review it, focusing on whether our requirements have been met." He added, "If there are no significant issues with the key items required for investment decisions, the fundraising can proceed according to the schedule in the registration statement."
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