Singer 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 violating capital market laws.
According to prosecutors, the group deceived investors by claiming that three KOSDAQ-listed companies were pursuing new business ventures related to advanced technologies, leading to significant financial gains. The initial stock manipulation scheme was reportedly initiated by a former prosecutor, 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 artificially inflate the stock price from 490 KRW to 5,850 KRW, resulting in profits of approximately 14 billion KRW.
They also inflated the stock price of a renewable energy company, 퀀타피아 (Quantapia), by falsely announcing a confirmed investment of 100 billion KRW, extracting an additional 6 billion KRW. During this process, Lee Mo received a 30 million KRW retainer from A to resolve a trading suspension issue, promising a success fee of 1 billion KRW, which led to charges of violating attorney laws. Despite facing trial for capital market law violations, he continued his activities in collusion with a broker using borrowed accounts.
In a subsequent scheme, they targeted a manufacturer of SIM cards, 엑스큐어 (XQure), to recover losses from trading suspensions by spreading rumors about the company’s AI robot business and manipulating stock prices. 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, to recover the proceeds of crime.
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 a breakdown of trust within the family. He announced 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, claiming that reports regarding the family's criminal activities were false.
