Lee Seung Gi’s father-in-law has been linked to suspicious activity surrounding the M&A of KOSDAQ-listed company Xecure, despite claims that he was only involved in planning.
On July 10th, Korean media outlet Bloter reported that he played a key role in the complex financial dealings of Xecure’s merger and acquisition, contrary to earlier claims that he had stepped away after laying out the framework.
According to the report, he took on a central role in the acquisition of Xecure in 2023. However, he was later arrested in a separate case involving stock manipulation related to a renewable energy company called Quantapia.
In July 2023, he introduced himself as a strategic investor and proposed the acquisition of a robotics company during the process of unlisted company Hyper Corporation acquiring Xecure. At the time, AI and robotics were hot investment themes in the KOSDAQ market, and he claimed he would bring in financial investors to raise the necessary capital.
On July 18th, 2023, Xecure announced the issuance of convertible bonds worth 15 billion won ($11 million). The structure of the funding became complex due to multiple investors joining the deal. Despite his early involvement, he reportedly did not participate in the actual execution or payment of funds.
The proposed acquisition of the robotics firm ultimately fell through due to a lack of technological capabilities and business feasibility. However, fueled by market excitement over the AI and robotics theme, Xecure’s stock price surged from just over 3,000 won ($2.18) to nearly 10,000 won ($7.27) in July, boosting its market cap to 86.9 billion won ($63.1 million). Although business progress stalled and the bond schedule was delayed, new investors stepped in and completed the deal by year-end. As a result, the SPC (Special Purpose Company) used in the acquisition saw its ownership diluted to 73.21% due to outside investors.
Lee Seung Gi’s father-in-law is currently in custody and on trial for allegedly manipulating the stock price of Quantapia and now faces additional suspicions of market manipulation related to the Xecure acquisition. While he is believed to have designed the overall deal, he reportedly did not take part in raising funds or assuming financial responsibility, leaving Hyper Corporation to bear the full business risk.
Back in April, Lee Seung Gi publicly announced that he had cut ties with his in-laws through a statement released by his agency: “I believe any illegal actions should be met with appropriate punishment. This incident has severely damaged the trust between my family and my wife’s family, beyond repair. After much thought, we have decided to sever ties with my in-laws.”
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