Lee Iljun, chairman of Sambu Construction, who was investigated by the Minjungki Special Prosecutor's Team probing allegations related to First Lady Kim Gunhee in connection with stock manipulation suspicions, is leaving the courtroom after completing the pre-arrest suspect interrogation (warrant review) at the Seoul Central District Court on the 17th. Photo by Yonhap News
The Minjungki Special Prosecutor's Team, which is investigating various allegations related to First Lady Kim Gunhee, appears to have gained momentum in its investigation after securing its first suspects since the launch of the probe. The special prosecutor's team has taken into custody Lee Iljun, chairman of Sambu Construction, and Lee Eunggeun, former CEO, in connection with the Sambu Construction stock manipulation allegations.
On July 18, Lee Jeongjae, the judge in charge of warrants at the Seoul Central District Court, issued arrest warrants requested by the special prosecutor's team on charges of unfair trading under the Capital Markets Act. However, the arrest warrant for Cho Seongok, former chairman, who faces the same charges, was denied. The court cited insufficient evidence regarding Cho's specific role and involvement in the fraudulent trading scheme, as well as the need to guarantee the suspect's right to defense.
Lee Gihun, vice chairman of Sambu Construction and concurrently chairman of Wellbiotech, did not appear for the warrant review. The special prosecutor's team believes that Lee Gihun is currently on the run.
Chairman Lee and others are suspected of deceiving investors between May and June 2023 by making it appear that Sambu Construction would actively participate in Ukraine reconstruction projects, thereby inflating the stock price and then selling their shares to gain a total of 36.9 billion won in illicit profits.
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