The special counsel investigating Kim Keon-hee requested an arrest warrant on the 27th for Gu Se-hyeon, former CEO of Well Biotec, an affiliate of SAMBU Construction that faces stock manipulation allegations, on suspicion of violating the Financial Investment Services and Capital Markets Act, among other charges.
Well Biotec is a company where Lee Il-jun, chair of SAMBU Construction, served as the largest shareholder in 2023. At the time, Well Biotec was grouped with SAMBU Construction as a "Ukraine reconstruction beneficiary stock," and the share price surged. The special counsel suspects that around 2023, there were stock manipulation activities by management at both SAMBU Construction and Well Biotec.
That day, the special counsel said in a media notice, "We requested an arrest warrant for the former CEO on charges of violating the Financial Investment Services and Capital Markets Act, violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust), evidence concealment, and corporate flight."
The special counsel is investigating allegations that in May–June 2023, SAMBU Construction boosted its share price by misleading investors into thinking it would pursue a Ukraine reconstruction project despite lacking the capacity to do so. SAMBU Construction's share price rose from the 1,000-won range per share in May 2023 to the 5,000-won range in July that year, when former President Yoon Suk-yeol and spouse visited Ukraine.
Earlier, on Aug. 4, the special counsel indicted SAMBU Construction Chair Lee Il-jun and former CEO Lee Eung-geun on detention for violating the Financial Investment Services and Capital Markets Act. Well Biotec Chair Lee Ki-hoon, who previously served as vice chair of SAMBU Construction, was also indicted on detention on the 25th of last month. Lee fled on July 17 ahead of a pretrial detention hearing and was arrested in Mokpo, South Jeolla, on Sept. 10, 55 days later.
The former CEO served as Well Biotec's chief from 2018 through last year. The special counsel suspects the former CEO was involved in stock manipulation of SAMBU Construction and Well Biotec. It also believes the former CEO helped Lee Ki-hoon flee.