Court Cites "Dispute Over Criminal Charges"
Indictment Without Detention Expected
The special investigation team led by Min Jungki, which is investigating various allegations involving First Lady Kim Keonhee, has once again failed to secure the custody of Yang Namhee, chairman of Wellbiotech, an affiliate of Sambu Construction, who has been identified as a participant in stock price manipulation.
The special prosecutor's team led by Min Jung-ki, investigating allegations related to Mrs. Geonhee, is conducting a search and seizure at Wellbiotech in Gangnam-gu, Seoul, on August 21. The scene of the Wellbiotech office. Photo by Yonhap News Agency
According to the legal community on December 19, Lee Jeongjae, the presiding judge in charge of warrants at the Seoul Central District Court, dismissed the arrest warrant for Chairman Yang on the same day after holding a pretrial detention hearing (warrant review) the previous day. Judge Lee explained the decision by stating, "Even after considering the additional evidence submitted, there remains a dispute over the criminal charges."
This is the second time that the arrest warrant requested for Chairman Yang has been dismissed. The special investigation team had previously requested an arrest warrant last month, but the court rejected it, stating, "There is insufficient evidence to justify detaining the suspect regarding the main charges." After conducting a supplementary investigation, the special investigation team re-applied for the arrest warrant, but once again, the court ruled in favor of Chairman Yang.
Given that the special investigation team's mandate expires in nine days, on December 28, it is expected that Yang will be indicted without detention.
Yang faces charges of violating the Capital Markets Act, aggravated breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, and embezzlement in the course of work. He is accused of manipulating the stock price by deceiving investors in May 2023, making it appear as though Wellbiotech would participate in the reconstruction project in Ukraine. The special investigation team suspects that this was carried out in a manner similar to the Sambu Construction stock price manipulation that occurred during the same period.
The indictment of former Wellbiotech CEO Koo Sehyun, who was previously arrested and charged, states that Koo, Chairman Yang, former Vice Chairman Lee Gihun, and two others conspired to manipulate the stock price and gained illicit profits totaling approximately 30.211 billion won.
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