Lee Seung Gi‘s father-in-law and his associates have been sent to trial for manipulating the stock prices of three KOSDAQ-listed companies and unlawfully profiting around 20 billion won ($14.3 million).
On May 15th, the Seoul Southern District Prosecutors’ Office announced that a total of 13 individuals had been indicted, including 8 who were arrested, on charges including of the Financial Investment Services and Capital Markets Act. Among them is Lee Seung Gi’s father-in-law.
They reportedly manipulated the stock price of Jungang Advanced Materials, a secondary battery materials company, for about a year starting in November 2022. During that time, they allegedly drove the share price from 490 won to 5,850 won (approximately $0.35 to $4.20), making around 14 billion won (about $10 million) in illegal profits.
They then turned to another company, the renewable energy firm Quantapia, where they falsely announced that it had secured a 100 billion won ($71.8 million) investment to inflate its stock price, which earned them 6 billion won ($4.3 million) in illegal profits.
After Quantapia’s stock was suspended from trading in February 2023, Lee Seung Gi’s father-in-law allegedly paid a former prosecution investigator 30 million won (about $22,000) upfront, promising another 1 billion won (about $718,000) if he could help lift the suspension. The father-in-law now also faces charges of violating the Attorney-at-Law Act.
Prosecutors allege that the in-law was also the one who led the scheme to raise funds for the overseas escape of Lee In Kwang, the chairman of ESMO and a key figure in the Lime Asset Management scandal.
The two also allegedly manipulated stock prices through coordinated orders by spreading false information about USIM manufacturer Xcure’s AI robot venture in an attempt to offset losses from a trading suspension. Investigations indicate that Lee earned a profit of 100 million won ($718,000) by using insider information obtained during the company’s acquisition to purchase stocks indirectly through another person.
A prosecution official commented, “It is extremely rare for a price manipulation group to repeatedly commit such stock rigging crimes. Their actions cover all major illegal practices banned by the Capital Markets Act, including price manipulation, fraudulent transactions and the use of undisclosed information. This represents a serious threat to the integrity of capital markets.”
Meanwhile, Lee Seung Gi issued a statement on April 29th saying, “I am devastated by the illegal acts committed by my father-in-law. This incident has irreparably damaged the trust within my family. After long and painful consideration, I have decided to cut ties with my in-laws.”
>> Lee Seung Gi Says ‘Having a Daughter Made Me Happiest’ as He Cuts Ties with In-Laws
Source (1)
