Lee Iljun and Cho Seongok Appear as Suspects
Clarifying the Background and Process of the 'Stock Price Surge' Project
The special prosecutor team led by Min Jungki, which is investigating allegations surrounding First Lady Kim Keonhee, summoned both the current and former chairmen of Sambu Construction on July 10.
At around 10 a.m. that day, the team called in Lee Iljun, the current chairman, and Cho Seongok, the former chairman, as suspects for questioning at the special prosecutor’s office located in the KT Gwanghwamun Building West in Jongno-gu, Seoul.
Before entering, Chairman Lee drew a clear line in response to reporters’ questions about First Lady Kim or Lee Jongho, former CEO of Black Pearl Investment, stating, “They are people who have no connection at all.” When asked about the circumstances of participating in the Ukraine Reconstruction Forum, he replied, “As far as I know, it was something the CEO pursued for the company.” Regarding the acquisition of Sambu Construction in 2023, he said, “I originally worked in project development and thought it would be good to have a construction company, so I acquired it.”
Former Chairman Cho also denied any connection to the former CEO, saying, “They are people with whom I have no relationship whatsoever.”
In February 2023, three months before the Ukraine Reconstruction Forum that triggered the surge in Sambu Construction’s stock price, Chairman Lee became the largest shareholder by completing the acquisition of shares owned by former Chairman Cho through his cosmetics company DYD and others.
Since conducting a search and seizure at Sambu Construction on July 3, the special prosecutor team has been summoning related individuals daily to investigate the context before and after the Ukraine Reconstruction Forum. On July 4, they questioned former CEO Lee Eunggeun, and on July 6, they summoned a former employee who attended the forum. On July 8, they called in Yang Yongho, chairman of the Eurasia Economic Association, and Shin Gyucheol, former head of Sambu Construction’s management division. On July 9, they summoned both CEO Oh Illok and former CEO Jeong Changrae to inquire about the actual substance of the Ukraine reconstruction project.
Sambu Construction is suspected of deceiving investors by creating the appearance of pursuing business, such as signing various MOUs with local governments, following the Ukraine Reconstruction Forum hosted by the Eurasia Economic Association in Poland in May 2023, inflating its stock price, and then selling shares to obtain illicit profits.
The special prosecutor team is expected to investigate whether the two chairmen, both past and present, were involved in these alleged offenses.
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