Supreme Court Reverses “Not Guilty” Verdict For Lee Seung Gi’s Father-In-Law In Market Manipulation Case
The Korean Supreme Court has reportedly overturned a not-guilty verdict in the stock manipulation case of Lee Hong Heon, father-in-law of Lee Seung Gi.
According to reports from the legal industry on June 16, KST, the Third Division of the Supreme Court overturned the original judgment that acquitted Lee Hong Heon and his accomplice, who were indicted on charges of violating the Capital Markets Act. The case has been sent back to the Seoul High Court.
The accused were indicted on charges of manipulating stock prices of their KOSDAQ-listed company from November 2014 to February 2016 and then selling the shares obtained through a capital increase, which brought them a profit of ₩2.37 billion KRW (about $1.71 million USD). The first trial sentenced them to prison time and a hefty fine. But they filed an appeal, following which the appellate court acquitted them, stating that disclosure regarding the source of funds for the acquisition of shares and convertible bonds by the accused could not be considered a ‘significant matter’ under the Capital Markets Act’s criteria for determining unfair trading practices.
The Supreme Court reversed this ruling, declaring the appellate court’s judgment as erroneous,
The disclosure of the source of acquisition funds is a significant matter as it can affect the management or investment decisions of the company. The falsely recorded shares amount to 1.56% of the total shares. This exceeds the 1% threshold that triggers the obligation to report changes.
— The Supreme Court
With this new judgment, singer-actor Lee Seung Gi’s agency, BIG PLANET MADE Entertainment, took proactive steps to protect him from any public onslaught, releasing an official statement urging people to refrain from spreading false information or malicious speculations. The statement, however, has seemingly attracted more criticism toward Lee Seung Gi.
The megastar had previously defended her in-laws against backlash through a lengthy statement on his Instagram, inviting more ire from the public. You can read about it here.
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