Latest news with #SambuConstructionCo.
Korea Herald
14-07-2025
- Business
- Korea Herald
Arrest warrants sought for construction firm officials in case allegedly involving ex-first lady
The special counsel team investigating allegations involving former first lady Kim Keon Hee filed for warrants Monday to arrest four construction company officials over a stock manipulation case allegedly linked to her. The investigation team, led by special counsel Min Joong-ki, said it filed the warrants against Lee Il-jun and Cho Sung-wok, current and former chairman of Sambu Construction Co., respectively, along with a former vice chairman and a former CEO, on charges of violating the Capital Markets Act. It marks the first time arrest warrants have been sought by the special counsel team since it launched its investigation into allegations involving Kim earlier this month. The four executives are accused of allegedly duping investors into buying the firm's shares in 2023 on false information that it would take part in reconstruction projects in war-torn Ukraine, then selling off their shares at inflated prices to pocket massive illegal profits. The former first lady is alleged to have played a role in the scheme. Also on Monday, the special counsel team summoned the founder of Kakao Corp. and executives of several other companies for questioning over an investment scandal linked to one of Kim's aides. Kakao founder Kim Beom-su; vice chairman of HS Hyosung Corp. Jo Hyeong-sang; former president of the Korea Securities Finance Corp. Yoon Chang-ho; and former Daou Kiwoom Group Chairman Kim Ik-rae were told to appear for questioning at 10 a.m. Thursday. The scandal centers on allegations that a man surnamed Kim, who served as a "butler" for the former first lady's family, had reportedly received 18 billion won (US$13 million) in illegal investments from several companies, including Kakao Mobility Corp., for his rental car company, IMS, in 2023. The special counsel suspects that the funds invested in IMS may have been funneled to the former first lady in the form of slush funds. The executives were summoned as witnesses in the case, though their status could change to suspects depending on the outcome of the probe, officials said. "We will begin questionings of top decision makers of the companies (involved) ... this week to swiftly find the truth behind the so-called 'butler gate' and prevent the destroying of evidence," assistant special counsel Oh Jung-hee said in a regular press briefing.
Hans India
03-07-2025
- Business
- Hans India
South Korea: Special counsel team raids construction company in probe into ex-first lady
Seoul: A special counsel team launched a raid on a mid-sized builder on Thursday as part of its investigation into stock price manipulation allegations involving former first lady Kim Keon Hee. The team -- led by special counsel Min Joong-ki -- said in a notice to the press that the search and seizure at Sambu Construction Co. began in the morning. It is the first raid by the special counsel team since Min's appointment last month and Wednesday's launch of its investigation into various corruption allegations involving Kim, former President Yoon Suk Yeol's wife. She is suspected of involvement in manipulating the stock prices of Sambu Construction, in addition to allegedly accepting a luxury handbag and meddling in election nominations, along with other things. The Sambu case is less known than the others, however, as it was transferred to the special counsel before the prosecution dug deep, reported Yonhap news agency. Initially, it involved suspicions that in May to June 2023, around a dozen former and current owners and executives of the company deceived investors into thinking it would begin overseas reconstruction projects in order to raise its share prices and then sold their own shares to pocket profits worth tens of billions of won. But the share price increase coincided with Yoon and Kim's visit to Ukraine, where the then-President met Ukrainian President Volodymyr Zelenskyy to discuss reconstruction projects in the war-torn nation. The timing raised questions about whether the former first lady could have shared information with Lee Jong-ho, a former head of Black Pearl Invest who has been convicted in a separate stock price manipulation case linked to her, and prompted him to initiate large transactions of Sambu shares.
