This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:34 p.m. on Feb. 13, 2026.
Prosecutors labeled Lee Jun-min, a KOSDAQ market "player" they called the "top stock manipulation figure," and he was sentenced to prison in the first trial, but critics say the punishment was a slap on the wrist compared with the gravity of the crime and the government's resolve to root out stock manipulation.
Lee's group is said to have raked in illicit gains worth hundreds of billions of won through stock manipulation by mobilizing multiple listed companies, but observers say prosecutors failed to properly prove the size of the wrongful gains during the trial. They sought one of the longest-ever prison terms for a stock manipulation crime—15 years—but the verdict was bland.
According to the capital markets industry, Lee was sentenced to four years in prison and a fine of 500 million won in a first trial at the Seoul Southern District Court. Prosecutors had sought 15 years in prison and a fine of 2.6586 trillion won, but the court imposed a far lighter sentence. Considering that capital markets crimes are often significantly reduced on appeal, many expect Lee to return to the market soon.
Lee's group was accused of reaping massive illicit gains through stock manipulation while effectively controlling several corporations. The companies they mobilized for stock manipulation at the time included Dual Industry (formerly Diac, now Hyulim A-Tech), Canary Bio (now Hyundai Feed), and Edison EV.
In 2020, they set things in motion at Dual Industry. They entered the bio business by introducing the ovarian cancer treatment "oregovomab" from a Canadian pharmaceutical company and recognizing it as an intangible asset. They also changed the corporate name to OncoQuest Pharmaceutical (OQP).
OQP, which had been trading in the low 1,000-won range, rose to as high as 5,631 won, but in 2021 the auditor issued a disclaimer of opinion on the 2020 financial statements, triggering a delisting reason. The cause was the massive financial burden and lack of clarity about value arising from the introduction of oregovomab. OQP booked the intangible value of oregovomab rights at 375.2 billion won, but questions were raised about the actual value.
After OQP was suspended from transaction, they changed the name back to Diac and split the company into three through a spin-off into Dual Moolsan Holdings and OQP Bio, among others. Dual Moolsan Holdings established a subsidiary, Dual Moolsan, and took over the contracts related to oregovomab.
Their stock manipulation continued off-exchange. Dual Moolsan saw its share price on K-OTC, an over-the-counter market, jump more than 500-fold in about four months, and Lee's group pocketed more than 700 billion won in illicit gains in the process.
Afterward, they continued to recycle oregovomab-related material. They attempted a backdoor listing through the Dual Industry spin-off and another KOSDAQ-listed company, Hyundai Feed (later renamed Canary Bio), using a ploy of passing oregovomab-related rights among affiliates to keep inflating the share price. Canary Bio once faced delisting but resumed transaction after an ownership change, though the erased market capitalization amounts to hundreds of billions of won.
Canary Bio has now changed its name back to Hyundai Feed, and, based on an adjusted price reflecting capital increases and a stock split, it is currently suspended at a price 94.27% below its 2022 peak. As of the end of June last year, there were 72,620 minority shareholders who were "stuck" in the stock. According to Naver Pay's My Assets service, those stuck shareholders had an average purchase price of 4,566 won and a loss rate of 78.23%.
In addition, Lee's group was accused of artificially boosting the stock price of Edison EV (now Smart Solutions) by exploiting the positive news that Edison Motors would acquire SsangYong Motor (now KG Mobility). Edison EV, which had been under 10,000 won, jumped to 33,000 won before transaction was suspended at 11,600 won. Through liquidation trading in 2024, it ultimately proceeded to delisting.
Prosecutors focused on the case involving Lee's group from 2022 and indicted them three times. Nevertheless, the court said the prosecution's investigation was insufficient and acquitted them on most charges.
Prosecutors believed Lee's group gained more than 700 billion won through stock manipulation and sought a forfeiture of 2.6686 trillion won—about three times that amount—but the court did not accept it. Based on the investigative results alone, the court determined it was difficult to specifically calculate the size of the illicit gains.
With the Edison EV-related charges acquitted, the prison term was significantly reduced. A source familiar with the case said, "Some of the charges against Lee's group were acquitted on the grounds that the indictment itself was flawed," and added, "As for Edison EV, I understand that most charges were acquitted." Lee is said to have assembled a lavish defense team of more than 10 attorneys, including Lee & Ko.
Some, however, argue that the problem lies less with the prosecution's insufficient investigation and more with the court's overly textbook approach. Voices say it is inherently impossible to calculate perfectly, as the judge put it, the illicit gains from stock manipulation. A capital markets industry official said, "In the Rha Deok-yeon case, the first trial imposed a 25-year sentence, but the second trial late last year slashed it to eight years, showing a strong tendency to decide sentences too conservatively," and added, "Because the punishment is light, operations by groups continue even while they are on trial."
In fact, even last year, while standing trial in detention, Lee's group attempted to acquire a listed company. After the news broke, they officially stepped back from the bidding, but they are said to have actually acquired it by fronting another person as a figurehead and are effectively controlling the company.
Another capital markets industry official pointed out, "In the end, Lee's group is likely to receive a reduced sentence on appeal and have the fine cut drastically," adding, "President Lee Jae-myung's declaration to ruin stock manipulators financially does not seem to be resonating with the bench."