On May 15, the Seoul Southern District Prosecutors’ Office’s Financial and Securities Crime Joint Investigation Division announced that it had arrested 8 people, including Mr. Lee, and indicted a total of 13 for violating the Capital Markets Act and related offenses.
The suspects are accused of falsely promoting new business ventures for three KOSDAQ-listed companies to artificially inflate stock prices, securing unjust profits of approximately ₩14 billion (around $10 million USD).
The stock price of Joongang Advanced Materials reportedly jumped more than tenfold—from ₩490 to ₩5,860 in one year. In another case, a fake investment commitment was publicly disclosed for Quantapia, leading to an additional ₩6 billion being siphoned off. Even after trading was suspended, they spread rumors about an AI robot business involving the SIM card manufacturer XCURE, manipulating stock prices further. Mr. Lee is also accused of using undisclosed information obtained during company acquisitions to buy stocks under borrowed names, profiting around ₩100 million in capital gains.
It was also revealed that Mr. Lee paid ₩30 million upfront and promised ₩1 billion in success fees to former prosecution investigator “A” (59) in an attempt to resume stock trading. Investigator A is also known to have been involved in securing escape funds for Lime Asset Management scandal ringleader Lee In-kwang.
Prior to news of his father-in-law’s arrest, Lee Seung-gi had already announced he was severing ties with his in-laws.
On April 29, Lee Seung-gi released a statement saying, “Although my father-in-law was previously fined in a retrial for illegal activities, he has now been indicted again for similar misconduct,” adding, “Having waited with trust in family, I am devastated by his repeated wrongdoing.”
Lee Seung-gi married Lee Da-in in 2023 and welcomed their daughter in February last year. At the time of his marriage announcement, many pointed out that Lee Da-in‘s stepfather had been on trial for stock manipulation charges since 2016. Lee Seung-gi then asked the public “not to attack his family, as these were matters to be handled internally.”
Now, however, Lee Seung-gi reflects, “I deeply regret speaking rashly without thorough review last year,” and revealed, “Due to this latest incident, the trust between families has been irreparably damaged, and after long deliberation, my wife and I have decided to cut ties with my in-laws.”
He continued, “Illegal activities must be met with proper punishment. I sincerely apologize to any victims who suffered because of my hasty judgment and also to those who trusted and supported me,” vowing, “From now on, I will live with a stronger moral compass and a greater sense of responsibility for a healthier society.”
Previously, in June last year, the Supreme Court overturned the lower court’s acquittal of Lee Seung-gi’s father-in-law, who was accused of manipulating stock prices for illegal profits, and returned the case to the Seoul High Court.
Full Statement from Lee Seung Gi
Hello, this is Lee Seung-gi.
It is with a heavy heart that I deliver this message.
Although my father-in-law was previously sentenced to a fine in a retrial regarding ongoing allegations of illegal activities, he has recently been indicted again by investigative authorities for similar offenses. As someone who had been waiting for the results based on family trust, I cannot conceal my devastation over his misconduct.
I deeply regret having made hasty remarks last year without thoroughly reviewing the matters related to my father-in-law. I firmly believe that illegal acts must be met with appropriate punishment, and I sincerely apologize to the victims who may have suffered because of my premature judgment. I also extend my sincerest apologies to everyone who trusted and supported me.
Due to this incident, the trust between our families has been irreparably damaged, and after much deliberation, my wife and I have decided to sever ties with my in-laws.
Moving forward, I will strive to uphold sound values and live with a sense of responsibility for building a healthier society.
I once again bow my head in apology for causing concern and disappointment with my personal matters.
Thank you.