Chairman Lee Il-jun and former CEO Lee Eung-geun of SAMBU Construction were arrested on the 18th on charges of stock manipulation.
Director General Lee Jeong-jae of the Seoul Central District Court issued an arrest warrant for Chairman Lee and former SAMBU Construction CEO Lee Eung-geun around 2 a.m. that day on charges of fraudulent trading under the Capital Market Act. The Director General stated, "There is concern of flight and concern about the destruction of evidence."
However, the court dismissed the arrest warrant for former SAMBU Construction Chairman Cho Sung-wook, who is facing the same charges. The Director General noted, "There is insufficient clarification regarding Cho's specific role and involvement in the fraudulent trading crime, and the necessity and appropriateness of detention cannot be recognized at this stage due to the need to guarantee the right of defense."
Earlier, Special Prosecutor Kim Keon-hee applied for arrest warrants for four individuals, including Chairman Lee, former Chairman Cho, former CEO Lee, and Vice Chairman Lee Gi-hoon of SAMBU Construction, on the 14th.
They are accused of deceiving investors into believing that SAMBU Construction would actively pursue the reconstruction project in Ukraine from May to June 2023, subsequently inflating the stock price and pocketing illicit gains. Among them, Vice Chairman Lee is considered a key figure who planned the Ukraine reconstruction forum, while former CEO Lee is reported to have overseen the signing of business agreements between SAMBU Construction and foreign corporations.
The Seoul Central District Court was scheduled to conduct arrest warrant hearings for the four individuals sequentially starting on the morning of the 17th. However, Vice Chairman Lee Gi-hoon did not appear in court that day. The special prosecutor noted, "We believe that Vice Chairman Lee has fled."