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Financial watchdog cites lack of evidence against ex-first lady in Sambu unfair trading case
Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), speaks during a media conference at the FSS building in Seoul, Thursday. Yonhap
By Jun Ji-hye
Former President Yoon Suk Yeol’s wife, Kim Keon Hee, was excluded from referral to the prosecution over alleged stock manipulation involving Sambu Construction, as “no grounds for indictment have been found,” the head of the country’s financial watchdog said Thursday.
Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), noted that the case has now been handed over to “a third party” — the prosecution — to verify the appropriateness and fairness of his agency’s judgment, dismissing suspicions that his personal acquaintance with Kim played a role in the decision.
"We have handed over all financial tracking data related to individuals suspected of involvement in the alleged stock manipulation of Sambu Construction to the prosecution," Lee said during a media briefing in Seoul. "At the level of the financial authorities, no evidence has been found so far to confirm unfair trading by the individuals in question that would warrant a formal complaint."
"The individuals in question" referred to by the governor are understood to include Won Hee-ryong, former land and transport minister under the Yoon administration, Lee Jong-ho, former head of Blackpearl Invest, and Yoon’s wife.
The comments came as the Securities and Futures Commission under the Financial Services Commission on Wednesday referred about 10 people— including current and former CEOs of the construction company — to the prosecution for suspected violations of the Capital Markets Act.
They are accused of inflating the stock price by issuing misleading press releases to create the false impression that Sambu was actively pursuing Ukraine reconstruction projects and then selling shares for illicit gains worth tens of billions of won.
However, the referral did not include the three individuals in question, sparking controversy.
The former Blackpearl Invest head is a key figure in the alleged Deutsche Motors stock manipulation case, in which Kim was also implicated.
Former President Yoon Suk Yeol and his wife, Kim Keon Hee, leave the presidential residence in Yongsan District in central Seoul, April 11, after his impeachment was upheld on April 4. Joint Press Corps
Sambu’s stock price, which had been in the 1,000-won ($0.7) range, skyrocketed to 5,500 won in July 2023 after the firm attended a global forum in Poland in May of the same year to discuss Ukraine's reconstruction projects.
The main opposition Democratic Party of Korea has raised suspicions of stock manipulation, pointing to a message posted by the former Blackpearl Invest head in a group chat saying, “Check Sambu tomorrow.” Following this, Sambu’s trading volume and stock price surged.
The party highlighted that the timing of the surge coincided with Yoon and his wife’s July 2023 visit to Ukraine, where they discussed reconstruction projects with Ukraine President Volodymyr Zelenskyy and his wife.
The FSS launched its inspection into the case in September last year based on the Korea Exchange’s findings of unusual trading.
Lee of the FSS said that during the inspection, his agency made every effort to expand the scope to include any accounts that could reasonably raise suspicion, ensuring that all concerns were addressed within its authority.
“The ball is now in the prosecution’s court. The financial authorities will fully cooperate with the investigation, providing resources, analysis and support to ensure that all issues are thoroughly examined,” he said.
Regarding concerns over the fairness of the FSS inspection, Lee said, “I faced criticism because of my personal ties to those involved in the suspicions. I acknowledge that from the beginning, there was a potential for doubts about the fairness of the process, which is why I believe a third party, the prosecution, should review the validity of our judgment.”