Lee Seung gi’s Father-in-Law Found Guilty of Stock Manipulation…Kyeon Mi-ri Also Involved
Singer Lee Seung-gi’s father-in-law, Mr. A, has been found guilty of stock manipulation by the Supreme Court. This ruling is expected to have a significant impact on Lee Seung-gi’s public image.
The Supreme Court’s 3rd Division (Chief Justice No Jeong-hee) overturned the lower court’s acquittal of Mr. A and his business partner, Mr. B, on charges of violating the Capital Markets Act, and sent the case back to the Seoul High Court. Initially, Mr. A and Mr. B were sentenced to four years in prison and fined 2.5 billion won and three years in prison and fined 1.2 billion won, respectively, for their involvement in false disclosures. However, the appellate court acquitted them, but the Supreme Court found errors in this judgment and ordered a retrial.
The Supreme Court ruled that the disclosure of the “funding source for acquisition” constitutes a “material fact” under the Capital Markets Act. Mr. A and Mr. B had acquired new shares and convertible bonds by borrowing 600 million won and 1.5 billion won, respectively, but falsely disclosed these as their own funds. This misleading information was considered critical to investor decisions.
Kyeon Mi-ri was also implicated in the case for her involvement in the company’s stock acquisition alongside her husband, Mr. A, using borrowed funds while falsely declaring them as her own. The Supreme Court pointed out that Kyeon Mi-ri participated in the company’s capital increase and became its largest shareholder, a fact that was widely reported in the media, thereby misleading investors.
Lee Seung-gi’s agency, Big Planet Made Entertainment, issued a statement on the 16th expressing their frustration and pleading for the family to be left alone. Lee Seung-gi claimed that the incident occurred before his marriage and was unrelated to him. He had previously taken a firm stance against his former agency Hook Entertainment in December 2022, stating that “the value of someone’s hard work should not be unfairly used for someone else’s greed.”
Attorney No Jong-eon from Law Firm Jonjae emphasized the severity of false disclosures and the harm to investors, noting that South Korea’s penalties for stock manipulation are less severe compared to the United States. “In the U.S., similar false disclosures could lead to sentences exceeding 100 years, whereas in South Korea, it’s difficult to see sentences beyond five years, and suspended sentences are common,” he said.
This Supreme Court ruling reaffirms the strict application of the Capital Markets Act and the importance of investor protection. With the acquittal overturned, the case will be retried, and specific sentences will be determined.This case spans the realms of entertainment and legal fields, highlighting the seriousness of stock manipulation and the necessity for investor protection. While Lee Seung-gi tries to distance himself by emphasizing the incident occurred before his marriage, the impact on his image seems inevitable.
