Seoul Central District Court Detains Former and Current Executives of Sambu Construction... Investigation into Stock Manipulation Gains Momentum

[Financial News] The court has detained former and current executives of Sambu Construction, who are under suspicion of stock manipulation.
Seoul Central District Court Judge Lee Jeong-jae, who is in charge of warrants, issued detention warrants on the 17th for Sambu Construction Chairman Lee Il-jun and former CEO Lee Eung-geun. The court explained the reason for issuing the warrants, stating "There is a concern about flight risk and evidence destruction." The detention warrant for former Chairman Jo Seong-ok was dismissed, stating "There is a lack of specific roles, participation details, and execution acts regarding fraudulent unfair trading crimes. Considering the need to guarantee the suspect's right to defense, it is difficult to recognize the necessity and appropriateness of detention at this stage."
They underwent pre-detention suspect questioning (warrant review) in sequence from 10:30 AM that day, but Vice Chairman Lee did not attend the scheduled 2:10 PM review. The special investigation team led by Kim Geon-hee judged that Vice Chairman Lee had cut off contact and fled.
They are accused of deceiving investors into believing that Sambu Construction would push for a reconstruction project after attending the Ukraine Reconstruction Forum around May to June 2023, thereby inflating stock prices and selling their shares for hundreds of billions of won in profit. The special investigation team suspects that Sambu Construction lacks the capability and intention to pursue the project and is continuing the investigation.
The special investigation team led by Kim Geon-hee successfully secured the suspect's custody for the first time since the investigation began on the 3rd. Although the search and seizure warrant for 'Butler Gate' Kim Ye-seong was dismissed, the team gained momentum in the investigation by successfully obtaining an arrest warrant the previous day.
As the special investigation team has been putting effort into the investigation by conducting searches and reference interviews for the 'Sambu Construction Stock Manipulation Allegation', they are expected to closely examine whether former Black Pearl Investment CEO Lee Jong-ho and First Lady Kim Geon-hee were aware of or involved in the allegations.
However, challenges remain. As the search and seizure warrant for Kim Ye-seong and the detention warrant for former Chairman Jo were dismissed, there are criticisms that the special investigation team may lack the logical establishment and evidence to explain the charges to the court. As a result, the special investigation team is expected to approach forced investigation methods such as arrest and detention of suspects more cautiously in the future.

theknight@fnnews.com Jeong Kyung-soo Reporter