Singer and Actor Lee Seung-gi's Father-in-Law Arrested in Stock Manipulation Case
A group involved in stock manipulation using advanced technologies such as secondary batteries, quantum technology, and AI robots has been arrested, with Lee Seung-gi's father-in-law among those charged. The Seoul Southern District Court's Financial Securities Crime Joint Investigation Unit announced on May 16 that a total of 13 individuals, including Lee's father-in-law, Lee Mo (58), have been indicted for violations of the Capital Markets Act.
According to prosecutors, the group deceived investors by claiming that three KOSDAQ-listed companies were pursuing new business ventures related to advanced technologies, artificially inflating stock prices and reaping significant profits. The initial stock manipulation scheme was reportedly initiated by a former prosecutor, identified as A, to fund the overseas escape of Lee In-kwang, a key figure in the Lime Asset Management scandal.
The first target of their manipulation was a secondary battery materials company, 중앙첨단소재 (Jungang Advanced Materials). From November 2022, they repeatedly placed orders to manipulate the stock price, increasing it from 490 KRW to 5,850 KRW, resulting in profits of approximately 14 billion KRW.
They then targeted a renewable energy company, 퀀타피아 (Quantapia), falsely announcing a confirmed investment of 100 billion KRW, which allowed them to siphon off an additional 6 billion KRW. During this process, Lee Mo allegedly accepted a retainer fee of 30 million KRW from A to resolve a trading suspension issue at Quantapia, promising a success fee of 1 billion KRW, leading to charges of violating attorney laws. Despite facing charges under the Capital Markets Act, he continued his activities in collusion with a broker using borrowed accounts.
In a subsequent manipulation attempt, they used a company called 엑스큐어 (XQure), which was rumored to be pursuing an AI robot business, to artificially inflate stock prices again. Investigations revealed that Lee Mo profited 100 million KRW from stock purchases using undisclosed information during the acquisition process.
Prosecutors described the actions as unprecedented, stating that the continuous manipulation and fraudulent trading posed a significant threat to the integrity of the capital market. They plan to seize assets worth approximately 3 billion KRW, including real estate and luxury vehicles owned by the group, to recover criminal proceeds.
In a statement released on April 29, Lee Seung-gi expressed his distress over the legal issues surrounding his father-in-law, noting that while a fine had been imposed in a previous case, the recent charges have led to further investigations. He stated that the trust within his family has been severely damaged and that he and his wife have decided to sever ties with her family after much contemplation. Previously, Lee Seung-gi had defended his father-in-law against public criticism regarding the stock manipulation allegations, claiming that reports related to his in-laws were false.
