SEOHEE CONSTRUCTION's stock plummeted in the afternoon of the 11th. The impact followed the news that the 'Kim Keon-hee special prosecutor' would conduct a search and seizure of SEOHEE CONSTRUCTION. The company's shares were suspended from transaction that day as they became the subject of inquiry disclosure regarding rumors.
SEOHEE CONSTRUCTION's stock was suspended from transaction at 3:05 p.m. due to the inquiry disclosure reason 'rumors or reports related to allegations of embezzlement and breach of trust of current executives.' Before the transaction was suspended, SEOHEE CONSTRUCTION's stock was trading at 1,623 won, down 7.31% (128 won) from the previous trading day on the KOSDAQ market.
Earlier that morning, the special prosecutor team, which is investigating allegations against Mrs. Kim Keon-hee, conducted a search and seizure of SEOHEE CONSTRUCTION in relation to the 'NATO necklace allegations.'
The special prosecutor team stated through a media notice, 'We have initiated a search and seizure of SEOHEE CONSTRUCTION in connection with the ongoing investigation.' It is reported that the special prosecutor team is considering the possibility that SEOHEE CONSTRUCTION gifted Mrs. Kim an expensive necklace in exchange for favors.
The necklace worn by Mrs. Kim during her overseas trip to attend the North Atlantic Treaty Organization (NATO) meeting in 2022 has come under scrutiny. This arose from allegations that she omitted the necklace from her property declaration.
The special prosecutor team searched the Van Cleef & Arpels store to investigate whether the necklace was a gift with a quid pro quo. It is reported that a close aide to the chairman of SEOHEE CONSTRUCTION secured records of purchasing a model product like this necklace on March 9, 2022, shortly after the presidential election.
Meanwhile, SEOHEE CONSTRUCTION must respond to rumors and reports regarding allegations of embezzlement and breach of trust of its current executives by the 12th. If the allegations are untrue, the transaction suspension will be lifted immediately, but if a definitive public announcement confirms the embezzlement and breach of trust by current executives, the transaction will remain suspended during the review process.