South Korea court seeks three-year term for KOSDAQ chairman over fugitive in stock-manipulation case
The Seoul Central District Court heard the case on the 13th, with the Special Prosecutor’s Office led by Min Jung-gi seeking a prison term for Lee M., the chairman of a KOSDAQ-listed company, on charges of aiding the flight and concealment of the former vice chairman of Sambo Construction who fled before a court review related to stock-manipulation allegations.
Prosecutors requested a three-year prison sentence for Lee M., and one to two years for six co-conspirators who helped in the fugitive’s evasion, during the plea phase of the trial in the court’s Criminal Division 22.
They argued that the defendants’ actions materially obstructed the pursuit of the real facts behind the stock-manipulation cases involving Sambo Construction and WellBioTech, and that significant investigative resources were diverted as a result—tracking the escape route, analyzing communications, interviewing more than 60 people, and visiting about 30 locations.
The prosecution stressed that Lee M. was the starting point of the flight, involved in preparing the escape by arranging funds, providing a corporate card and shelter, and even supplying misleading information to investigators to cause confusion.
They noted that Lee M. conducted his actions while on bail, calling the conduct highly improper and indicative of a poor criminal character.
In his final remarks, Lee M. apologized, saying he could not sever ties with the former vice chairman’s request and that he bears responsibility for his actions.
Before sentencing, prosecutors asked to withdraw or modify some charges related to aiding the escape, and the court allowed the changes. The sentencing date is set for the 16th of next month.
The charges concern Lee M.’s assistance to the fugitive in July last year, including providing transport and communications as the former vice chairman evaded capture ahead of a bail hearing. The fugitive was arrested in Mokpo, Jeollanam-do, 55 days after the escape. He had been indicted on September 26 last year for involvement in stock manipulation that yielded about 36.9 billion won in illicit gains and has been on trial since then.
For international readers, this case underscores how South Korea is tightening corporate governance and market-management enforcement against stock manipulation and flight-of-fugitive scenarios in its mid- to small-cap sectors, which include many KOSDAQ-listed technology and biotech firms. The outcome may influence investor confidence, capital flows, and regulatory expectations for cross-border holdings and U.S.-based funds with exposure to Korean equities. It also highlights how specialized prosecutors and courts address complex financial-crime cases in Korea, with potential implications for how such cases are perceived by global markets and partners.