Kim Gunhee Special Prosecutor Summons Current and Former Executives of Sambu Construction Affiliate Wellbiotech

The special prosecutor's team led by Min Joongki, which is investigating allegations related to First Lady Kim Gunhee, has summoned current and former executives of Wellbiotech, an affiliate of Sambu Construction.

Min Joongki, the special prosecutor in charge of the case related to First Lady Kim Gunhee's allegations, is giving a greeting speech at the plaque unveiling ceremony held at the special prosecutor's office set up in the KT Gwanghwamun Building West in Jongno-gu, Seoul. Photo by Jo Yongjun

On the morning of July 13, the special prosecutor's team called Lee, the chairman of Wellbiotech and vice chairman of Sambu Construction, as well as Koo, the former CEO of Wellbiotech, in for questioning as suspects. They are under investigation on charges including unfair trading practices under the Capital Markets Act.

Koo did not respond to reporters' questions, such as whether he admitted to allegations that Sambu Construction and Wellbiotech engaged in stock price manipulation starting with the Ukraine Reconstruction Forum. Lee entered the building through a different entrance where no reporters were present.

Wellbiotech participated in the Ukraine Reconstruction Forum in May 2023, which triggered a surge in Sambu Construction's stock price. Ten days before the forum, the company announced it would hold a shareholders' meeting to appoint a new inside director. After it became known that a candidate for inside director was involved with the forum organizers, the stock price rose. The special prosecutor's team suspects that Sambu Construction and Wellbiotech manipulated the stock price by misleading investors into believing they would participate in Ukraine reconstruction projects.

The special prosecutor's team is accelerating its investigation, conducting a search and seizure at Sambu Construction and summoning a series of key figures for questioning, including former CEO Lee Eunggeun, CEO Oh Illok, former CEO Jung Changrae, former chairman Cho Seongok, and current chairman Lee Iljun.