Actor Lee Seung-gi has announced that he is severing ties with his in-laws due to the arrest of his father-in-law on fraud charges. Despite this, he continues to follow his ‘sister-in-law,’ Lee Yoo-bi, on Instagram.
On the 29th, according to legal sources, the Seoul Southern District Prosecutors’ Office’s Financial Securities Crime Joint Investigation Division obtained an arrest warrant for Lee Seung-gi’s father-in-law, known as Mr. Lee, who is also the stepfather of Lee Da-in, Lee Seung-gi’s wife, on the grounds of violating the Capital Markets Act.
The prosecution discovered evidence that Mr. Lee was involved in stock price manipulation related to a KOSDAQ-listed company called Quantapia during an investigation triggered by a report from the Securities and Futures Commission. Previously, nine individuals were prosecuted for inflating stock prices through promotion of Quantapia’s quantum image sensor business, allegedly reaping illegal profits of approximately 20 billion KRW. These individuals allegedly manipulated stock prices by leaking undisclosed information about the merger and acquisition of Quantapia and Jungang DNM to artificially drive up the stock prices.
Mr. Lee had already faced separate charges of artificially inflating stock prices from running another KOSDAQ-listed company from November 2014 to February 2016. He was accused of generating approximately 2.37 billion KRW in profits through illegal actions, for which he was sentenced to four years in prison and fined 2.5 billion KRW in the first trial. His co-operator, Mr. B, received three years in prison and a fine of 1.2 billion KRW. However, during the appeal, the court found them not guilty, stating that the financial disclosures at issue did not constitute a ‘material matter’ as required under the Capital Markets Act.
Yet, the decision was overturned by the Supreme Court in June last year, which found errors in the appellate ruling. Subsequent investigations revealed further violations, leading to Mr. Lee’s re-arrest under suspicion of evidence destruction.
Lee Seung-gi expressed his devastation over his father-in-law’s repeated involvement in illegal activities, stating, “The trust within the family has been irreparably damaged. My wife and I have decided to sever ties with our in-laws after long contemplation. We aim to live with a proper value system and take responsibility as upright members of society.” He apologized to those affected by his previous hasty judgment and any distress caused by the situation.
Despite declaring the end of relations with his in-laws, Lee Seung-gi continues to follow his sister-in-law, Lee Yoo-bi, on social media, suggesting the situation may yet evolve further. /[email protected]