Kim Geon-hee Special Prosecutor, First Indictment After Investigation Begins... 'Sambu Construction Stock Manipulation' Lee Il-jun and Lee Eung-geun Go to Trial

[Financial News] The Kim Geon-hee Special Prosecutor Team (Min Jung-gi Special Prosecutor) has brought Lee Il-jun, Chairman of Sambu Construction, and former CEO Lee Eung-geun to trial for stock manipulation allegations. This is the first indictment since the special prosecutor team began its investigation.
Special Prosecutor Moon Hong-joo announced on the 4th that the two individuals, charged with violating the Capital Markets Act, were indicted on the 1st after being detained. They were brought to trial 19 days after being detained by the court's warrant issued on the 17th of last month.
They are accused of deceiving investors into believing that Sambu Construction would pursue a reconstruction project following their participation in the Ukraine Reconstruction Forum in May-June 2023, thereby raising stock prices and selling their shares to gain 36.9 billion won. The special prosecutor team suspects that Sambu Construction lacks the capability and intention to pursue the project and continues its investigation. The team is also focusing on apprehending Vice Chairman Lee Ki-hoon, who fled after refusing to attend a pre-arrest interrogation (warrant review), while continuing the investigation into former Chairman Jo Seong-ok, whose arrest warrant was dismissed.
The special prosecutor team also refuted claims by former President Yoon Seok-yeol's side that he removed his prison uniform due to the heat during the failed execution of the arrest warrant on the 1st. Special Prosecutor Moon, who was involved in the warrant execution, stated, "Removing the uniform was not to escape the heat, in our view," and "He resisted strongly while lying down, and the Minister of Justice also accepted the opinion of the Seoul Detention Center, which was the same," he explained.
He continued, "During the 2017 Park Geun-hye National Corruption Special Prosecutor, former President Yoon was the head of the investigation team and forcibly brought in Choi Soon-sil, who did not appear, by applying for and obtaining an arrest warrant," adding, "We are just trying to apply the same."
The special prosecutor team is summoning former Foreign Minister Park Jin for investigation. Former Minister Park is being questioned as a reference, and the team is expected to inquire about the circumstances surrounding the unplanned visit to Ukraine by former President Yoon and his wife in July 2023, following their visits to Lithuania and Poland. This is because Sambu Construction, embroiled in stock manipulation, attended the Ukraine Reconstruction Forum held in Poland two months before the Yoon couple's Ukraine visit and promoted signing a Memorandum of Understanding (MOU). Subsequently, Sambu Construction's stock price surged.
Additionally, the special prosecutor team is investigating former Presidential Office Administrative Officer Yoo Kyung-ok. Former Officer Yoo, one of the "Kim Geon-hee's Three Musketeers," was summoned once on the 25th of last month. The team is expected to investigate the allegations regarding Kim's Van Cleef & Arpels necklace during the NATO tour and the civilian's accompanying the tour.
The NATO tour necklace allegation arose when it was revealed that Kim wore a Van Cleef & Arpels necklace worth 60 million won during the NATO tour in August 2023, which was missing from the asset report. The Presidential Office explained that the necklace was "borrowed from a friend." The special prosecutor team, while conducting a search and seizure of Kim's brother Kim Jin-woo on the 25th of last month, found the necklace but determined it was a replica and is tracing the necklace's origin. Kim's legal team refuted, "The claim that a replica necklace was purchased and given to Mr. Kim is false."
The civilian tour companion allegation involves Shin, the wife of former Presidential Office Personnel Secretary Lee Won-mo, who accompanied the NATO tour as a civilian, reportedly receiving a diplomatic passport despite having no official position. The special prosecutor team is expected to question former Officer Yoo about △the source and origin of the necklace △the authenticity of the necklace worn by Kim.
Furthermore, the special prosecutor team announced that they are summoning former Unification Church World Headquarters Director Yoon Young-ho and Mr. Lee, who delivered necklaces and bags as gifts for Kim Geon-hee from Jeon Seong-bae, the "Geonjin Monk," in the "Geonjin Monk Gate" case.
theknight@fnnews.com Jeong Kyung-soo Reporter