Charged with Violating the Capital Markets Act
Arrest Warrant Requested Immediately After First Interrogation, One Day After Apprehension
The special prosecutor team led by Min Jungki, which is investigating allegations related to First Lady Kim Keonhee, has requested an arrest warrant for Lee Kihun, Vice Chairman of Sambu Construction.
The special prosecutor team announced that at approximately 7:42 p.m. on this day, it filed for an arrest warrant with the Seoul Central District Court against Vice Chairman Lee on charges of violating the Capital Markets Act. Lee is accused of participating in stock price manipulation of Sambu Construction from May to September 2023 and obtaining illicit gains amounting to several tens of billions of won (violation of the Capital Markets Act).
The special prosecutor team believes that Sambu Construction deceived investors by distributing press releases in May 2023, claiming to have signed various business agreements with local governments in Poland during the Ukraine Reconstruction Forum, thereby creating the impression that it would pursue reconstruction projects. At that time, Sambu Construction, classified as a Ukraine reconstruction stock, saw its share price, which was in the 1,000 won range in May 2023, soar to as high as 5,500 won within two months.
The special prosecutor team had previously requested an arrest warrant for Lee in July. However, he did not appear for the pre-arrest interrogation (warrant review) on the 17th of that month and went into hiding, only to be apprehended the previous day in Mokpo, South Jeolla Province. It is known that Lee evaded police and special prosecutor pursuit by using multiple mobile phones and portable Wi-Fi devices, moving between pensions in Gapyeong in Gyeonggi Province, Mokpo in South Jeolla Province, Uljin in North Gyeongsang Province, as well as locations in South Chungcheong Province and Hadong in South Gyeongsang Province.
The warrant review to determine whether Lee will be detained is expected to take place at the Seoul Central District Court on September 12. For suspects who are already under arrest, the warrant hearing must be held without delay.
There are also expectations that the special prosecutor's investigation could extend from Lee to First Lady Kim Keonhee. This possibility was raised after it was revealed that Lee Jongho, former CEO of Black Pearl Invest and an associate of the First Lady, had posted a message saying "Sambu, check tomorrow" in a group messenger chat before Sambu Construction's stock price surged. This has led to suspicions that the First Lady may have been involved in the stock price manipulation. Lee Jongho was previously responsible for managing the First Lady's account in the Deutsche Motors stock manipulation case. However, the special prosecutor team was unable to find any concrete evidence and only indicted Lee Jongho on charges of violating the Attorney-at-Law Act.
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