[Alpha Biz= Paul Lee] Seoul, April 23, 2025 — After more than seven months of investigation, the Financial Supervisory Service (FSS) has submitted its findings on alleged stock manipulation involving Sambu Construction to the Securities and Futures Commission (SFC) under the Financial Services Commission (FSC).
At today’s regular meeting, the SFC is expected to deliberate and vote on referring key individuals involved in the case to the prosecution on charges of unfair trading under the Capital Markets Act. The agenda had previously been reviewed by the Capital Markets Investigation and Review Committee on April 21.
The FSS began its investigation in September 2024, following a preliminary report from the Korea Exchange. Authorities reportedly uncovered suspicious trading activities involving over 200 brokerage accounts, including those tied to former Chairman Cho Sung-ok, her family members, major shareholders, and related entities. These parties are believed to have sold off hundreds of billions of KRW worth of Sambu Construction shares since May 2023, securing illicit gains estimated at over KRW 10 billion (approx. USD 7.2 million).
The high-profile nature of the case has drawn considerable political attention. FSS Governor Lee Bok-hyun recently stated in a radio interview that the agency aimed to conclude the probe by the end of April. While no direct links have been found between the case and political figures such as First Lady Kim Keon-hee or former Minister of Land Won Hee-ryong, the FSS confirmed it is continuing to analyze any potential connections.
This marks a key step forward in one of Korea’s most closely watched market manipulation investigations in recent years.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
