Kim Keonhee Special Prosecutor Requests First Arrest Warrants for Four Including Former and Current Sambu Construction Chairmen

The special prosecutor team led by Min Junggi, which is investigating various allegations related to Kim Keonhee, requested arrest warrants on July 14 for key executives of Sambu Construction, including Chairman Lee Iljun and former Chairman Cho Seongok, in connection with allegations of stock price manipulation involving the company.

On this day, the special prosecutor team requested arrest warrants for four individuals: Chairman Lee, former Chairman Cho, Lee Kihun (Vice Chairman of Sambu Construction and Chairman of Wellbiotech), and Lee Eunggeun (former CEO of Sambu Construction), on charges including fraudulent unfair trading under the Capital Markets Act.

This is the first time the special prosecutor team has requested arrest warrants since officially launching the investigation on July 3.

Chairman Lee and the others are suspected of misleading investors in May and June 2023 by making it appear that Sambu Construction would actively participate in reconstruction projects in Ukraine, artificially inflating the stock price, and then selling their holdings to gain illicit profits amounting to tens of billions of won.

Vice Chairman Lee is considered a key figure who managed the practical aspects of the share succession between former and current chairmen of Sambu Construction and organized the Ukraine Reconstruction Forum. In addition, former CEO Lee is known to have overseen business operations such as signing memorandums of understanding between Sambu Construction and overseas companies at the time.

Lee Iljun, Chairman of Sambu Construction (left), and Cho Seongok, former Chairman of Sambu Construction. Photo by Yonhap News

After conducting a search and seizure of Sambu Construction's headquarters and other locations on July 4, the special prosecutor team summoned and questioned these individuals in succession. If the arrest warrants are issued, it is expected to strengthen the investigation into Lee Jongho, former CEO of Black Pearl Invest, and Kim Keonhee, both of whom are at the center of the allegations.

Former CEO Lee became a subject of investigation after leaving a message reading "Sambu check tomorrow" in a group messenger chatroom just before Sambu Construction's stock price surged. Because he is known to have a close relationship with Kim Keonhee and there are indications that government agencies provided indirect support for Sambu Construction's participation in the Ukraine reconstruction project, suspicions have been raised about the possibility of Kim Keonhee's involvement.

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