'Cheongdam-dong Stock Tycoon' Lee Hee-jin, Illegal Stock Trading and Investment Solicitation Sentenced to Prison

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The Supreme Court has upheld a prison sentence for Lee Hee-jin (34), known as the 'Cheongdam-dong Stock Rich,' who was indicted for illegally trading stocks and attracting investments.

The Supreme Court's 2nd Division (Presiding Justice Park Sang-ok) announced on the 12th that it confirmed the original sentence of 3 years and 6 months imprisonment, a fine of 10 billion KRW, and a confiscation of approximately 12.267 billion KRW against Lee, who was charged with violating the Capital Markets Act and other offenses. The court also confirmed the original sentence for Lee's younger brother (32), who was tried on the same charges, of 2 years and 6 months imprisonment with a 4-year probation and a suspended fine of 7 billion KRW.

The Lee brothers are accused of establishing an investment trading company without financial investment business authorization and trading stocks worth about 170 billion KRW from July 2014 for approximately two years, earning about 13 billion KRW in capital gains. They are also charged with collecting over 24 billion KRW from investors by promising to guarantee principal and investment returns, and selling unlisted stocks worth approximately 29.2 billion KRW by providing false information on securities broadcasts and other media. Lee was known as the 'Cheongdam-dong Stock Rich' by flaunting his wealth through photos of luxury homes in Gangnam Cheongdam-dong and expensive imported cars posted on his blog and social media (SNS).

The first trial court sentenced Lee to 5 years imprisonment, a fine of 20 billion KRW, and confiscation of over 13 billion KRW, stating that he committed the crimes in an organized and planned manner by exploiting trust as a securities broadcast expert. However, the second trial court reduced Lee's sentence, judging that the acts were different from typical market disorderly conduct such as price manipulation. The Supreme Court found no error in the second trial court's judgment and confirmed it as is.

This content was produced with the assistance of AI translation services.