This article was published on May 22, 2025, at 2:35 p.m. on the ChosunBiz MoneyMove site.
Since April, it has been revealed that the surge in the stock price of Sangji Construction, which has risen as much as 1,768%, is deeply related to Hong Seok-jong, a corporate raider wanted for a capital-free merger and acquisition (M&A) and living abroad.
Mr. Hong, a corporate raider active since the early 2010s, is accused of stock manipulation and embezzlement through capital-free M&A. He is currently reported to be hiding in Europe. Sources say he has been residing in Monaco long-term, recently passing through Nice, France, before staying in Paris.
Mr. Hong fled overseas while using a falsified Chinese passport under the name Hwang Mo after telling prosecutors during an investigation in 2014, "I will go have dinner."
On the 22nd, multiple sources noted, "It is true that Mr. Hong planned the surge in Sangji Construction's stock price," but added, "However, he did not provide all the funds. Other (stock manipulation) teams, including moneylender Hwang Mo and a chairman of a listed corporation, are also involved."
Mr. Hong is known to exert influence over Kwangmu, Joongang Advanced Materials, Hyupjin, and Sangji Construction. These companies are subsidiaries and affiliated companies of Enchem, a secondary battery company, and sources explain that Mr. Hong has some influence over them.
For example, when Sangji Construction resold convertible bonds (CB), it transferred CBs to companies connected with Mr. Hong and Choi Mo, Hwang Mo, among others. It is said that Mr. Hong had a say in this process. However, Sangji Construction emphasized that "Mr. Hong has never been an executive or shareholder of the company" and "is unrelated to the company's management."
Sources argue that the connection between Mr. Hong and Enchem is linked through Choi Mo, who served as the representative of Sangji Construction and was involved in the acquisition of Seongji Construction in the past. Choi was arrested at the end of last year on charges of stock manipulation related to Joongang Advanced Materials but was recently released on bail. It is reported that Mr. Hong and Choi have maintained a close relationship since they met during the process of connecting Seongji Construction with the presidential theme stock in 2017.
They successfully recruited Kim Min-han, the brother-in-law of Lee Jae-myung, a candidate of the Democratic Party of Korea in the presidential election in 2017, linking Seongji Construction to Lee Jae-myung as a theme stock.(Related article ☞ [Exclusive] The forces that profited from Lee Jae-myung's theme stock eight years ago... now linked to Sangji Construction's suspicions)
Kim Min-han, the brother-in-law of candidate Lee Jae-myung, established ties with them again by serving as a director of Red Rover in 2018 and Joongang Advanced Materials (then Central Bio) in 2019.
A source familiar with the situation said, "Mr. Hong and Kim Min-han were close friends until the end of 2019" and explained, "They seemed to be trying to take care of Kim, being a director at Joongang Advanced Materials."
Meanwhile, they held Sangji Construction's CB either directly or indirectly, but none seem to have made what is known as a 'big hit.' There are reports that they disposed of their shares through block deals at relatively low prices, contrary to what is known, including a person who was a director of an entertainment company and married to a celebrity. There are rumors that Mr. Hong, the planner, did not expect Sangji Construction's stock price to rise this much and could not convert CB to stocks in time. However, this has not been confirmed.
Another market insider pointed out, "The number of Kozak companies involved in stock price manipulation by Mr. Hong and others is countless," adding, "Mr. Hong has been actively operating for more than 10 years, to the extent that his movements are well known, so I don't understand why the prosecution has not secured him yet."