Kim Keon Hee probe kicks off with Sambu stock manipulation case
The special counsel team on Thursday searched the headquarters of Sambu Construction, a midsized South Korean builder, marking the first step in a probe into one of several allegations involving former first lady Kim Keon Hee.
Thursday’s raid by the special counsel team — led by Min Joong-ki — was conducted to look into allegations surrounding Kim including stock price manipulation. The raid came three weeks after the special counsel was appointed on June 12.
Though the special counsel was tasked to probe a total of 16 allegations related to the former first lady, Min reportedly decided to prioritize the Sambu Construction case as it was considered an issue that was not adequately addressed in past Kim Keon Hee-themed investigations.
The suspicions relate to a time when Sambu's stock price, which had been in the 1,000-won ($0.74) range, started to skyrocket within a three-month period in 2023.
A message from Lee Jong-ho, the former CEO of Black Pearl Invest, sparked controversy in July, 2024.
The main opposition Democratic Party of Korea argued that Sambu’s trading volume and stock price surged after Lee posted a text message saying, “Check Sambu tomorrow” on May 14.
The party raised suspicions that Kim could be involved in this stock price manipulation, citing her personal ties with Lee, who was suspected of another stock price manipulation with Deutsch Motors with the former first lady.
It also argued that then-presidential couple’s visit to Ukraine to discuss the reconstruction project with Ukrainian President Volodymyr Zelenskyy on May 16 coincided with the stock price increase.
After the former Land Minister Won Hee-ryong and Sambu attended the Ukraine Recovery Conference on May 22, the stock price hit the daily price ceiling. It had skyrocketed to 5,500 won by July of the same year, when the presidential couple visited Ukraine once again for another summit.
Sambu Construction’s CEO, former and current owners were previously accused of inflating the stock price by creating a misleading impression that the company was set to take part in Ukraine reconstruction projects and then selling shares worth tens of billions of won.
But the Financial Supervisory Service, which previously looked into the alleged Sambu stock manipulation case, did not file a complaint with the prosecution against the former first lady and Land Minister Won as no evidence that they had done anything criminal was found.
Prior to Thursday’s search and seizure operation, the special counsel issued a travel ban to prevent Kim from leaving the country.
The special counsel announced that all suspicions against the former first lady are set to be probed by four individual assistant special prosecutors, who are tasked to reinvestigate Kim’s Deutsch Motors and Sambu stock manipulation case, acceptance of a luxury bag, election interference scandal regarding a political broker Myung Tae-kyun and involvement in a route change on the Yangpyeong Expressway.
The special counsel team has up to 150 days to complete the probe.
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