The Securities and Futures Commission, which oversees investigations into irregularities in the nation’s financial markets, will vote during its regular meeting on filing criminal complaints against individuals implicated in the manipulation of shares in Sambu Construction.
The anticipated move comes more than seven months after the Korea Exchange forwarded its findings on suspicious trading activity to the Financial Supervisory Service (FSS), the country’s top financial regulator.
“It is difficult to deny that certain stakeholders realized profits of more than 10 billion won,” or approximately $7.4 million, said Lee Bok-hyun, the head of the FSS, during a press briefing in early March. He added that the agency aimed to “resolve the matter within April if possible.”
The regulator has examined more than 200 trading accounts, including those of major shareholders, in its investigation. Officials said they analyzed trading patterns and capital flows to trace the origin of the illicit profits.
Shares of Sambu Construction skyrocketed from roughly 1,000 won in May 2023 to more than 5,000 won by July of that year.
During this period, DYD, the company’s largest shareholder, participated in a Ukraine reconstruction forum held in Poland, further raising questions about market sentiment and timing.
The case has drawn particular attention due to the involvement of Lee Jong-ho, the former head of Blackpearl Invest and a key figure in the Deutsche Motors stock manipulation scandal, which has also been linked to Kim Keon-hee.
Lee is believed to have referenced Sambu Construction in a group chat with former Marine Corps members, posting a cryptic message that read, “Sambu check," before the stock price began soaring.
Sambu Construction has been under mounting financial pressure. Trading of its shares has been suspended following two consecutive years of adverse audit opinions. The firm entered court-led rehabilitation proceedings last month as it faces a deepening liquidity crisis.
reporter
Kim Dong-young
davekim0807@ajupress.com
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