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Ms. Kim Keon-hee, spouse of former President Yoon Suk-yeol. (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] Seoul, July 13, 2025 — South Korea’s special prosecutor team led by Min Jung-ki, tasked with investigating First Lady Kim Keon-hee’s alleged involvement in a stock manipulation scandal related to Sambu Construction, has imposed an overseas travel ban on executives of KOSPI-listed company Wellbiotech, a Sambu affiliate.
According to News1, the special counsel’s office issued the travel ban against Mr. Lee, Vice Chairman of Sambu Construction and Chairman of Wellbiotech, and Mr. Koo, CEO of Wellbiotech. Both are suspected of manipulating stock prices by misleading investors into believing Sambu and Wellbiotech were involved in Ukraine reconstruction projects.
The investigation centers on a May 2023 Ukraine Reconstruction Forum held in Poland, hosted by Sambu Construction and attended by Wellbiotech. The special counsel alleges that, following the event, the companies artificially inflated their stock prices from May to June 2023 by falsely portraying themselves as beneficiaries of Ukraine’s postwar reconstruction.
Shares of both Sambu Construction and Wellbiotech surged shortly after the forum, with both companies being labeled as “Ukraine reconstruction plays.” Both stocks are currently under trading suspension.
Ten days before the forum, Wellbiotech announced a shareholders’ meeting to appoint new board members. The inclusion of individuals affiliated with the forum as candidates reportedly fueled the surge in share prices.
The special counsel has ramped up its investigation, conducting search and seizure operations at 13 locations, including Sambu Construction’s headquarters on July 3. Several key executives have already been summoned for questioning. On July 10, Sambu Chairman Lee Il-jun and former Chairwoman Cho Sung-ok were questioned for 16 and 13 hours respectively. On July 9, former CEO Chung Chang-rae and current CEO Oh Il-rok were each interrogated for over 16 hours.
All individuals questioned so far have denied any wrongdoing, claiming no connection to First Lady Kim Keon-hee, former Land Minister Won Hee-ryong, or former Black Pearl Investment CEO Lee Jong-ho, all of whom are also under scrutiny in the broader Sambu-related investigation.
The special counsel plans to summon Won and Lee for questioning in the near future based on evidence and testimonies gathered during the investigation.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
