No Mention of Kim Geon-hee in Stock Manipulation Case Arrest Warrants

The special investigation team led by Special Prosecutor Min Jung-ki has confirmed that the arrest warrants filed against current and former executives of Samboo Construction do not mention Kim Geon-hee, the wife of former President Yoon Suk-yeol, or Lee Jong-ho, the former head of Black Pearl Investment, in connection with stock manipulation allegations.

On July 16, it was revealed that the special prosecutor's team emphasized the lack of substantial overseas business operations at Samboo Construction as a key reason for the stock manipulation claims. The investigation centers around allegations that Samboo Construction artificially inflated its stock price by signing memorandums of understanding (MOUs) with Ukrainian construction firms, despite having no intention to participate in Ukraine's reconstruction projects since May 2023.

Lee Jong-ho, who managed Kim Geon-hee's accounts, was implicated after a message he sent in a KakaoTalk group chat suggested checking on Samboo's stock.

According to reports, the special prosecutor's team filed for arrest warrants on July 14 against four executives: Lee Il-jun (이일준), the chairman; Lee Gi-hoon (이기훈), the vice-chairman; Cho Sung-ok (조성옥), the former chairman; and Lee Eung-geun (이응근), the former CEO, citing violations of capital market laws. The warrants state that these individuals conspired to manipulate stock prices.

The special prosecutor's team noted that Samboo Construction distributed misleading press releases, starting with one on May 22, 2023, claiming participation in a forum for Ukraine's reconstruction. However, the investigation found that the company was not specially invited and that the MOUs signed contained no relevant details about the reconstruction efforts.

The prosecutor's team argued that the majority of the press release content was false and aimed at inflating stock prices. They provided evidence that the company had no ongoing overseas projects and was in a poor financial state, lacking the capability or intention to pursue international business.

The investigation revealed that the four executives allegedly manipulated stock prices and profited approximately 36.9 billion KRW by selling their shares. However, the arrest warrants did not mention Kim Geon-hee or Lee Jong-ho, leading to speculation in legal circles that the main suspects may deny any connection to them, complicating the investigation into Kim Geon-hee.

The substantive examination of the arrest warrants for the four executives is scheduled for July 17, and the special prosecutor's team plans to focus on establishing any links to Kim Geon-hee during their ongoing investigation.