Raids Conducted at Koo’s Residence and Corporate Offices
The prosecution has launched a compulsory investigation against Koo Yeon-kyung, the daughter of the late LG chairman Koo Bon-moo and head of the LG Welfare Foundation, who is accused of buying stocks using undisclosed information. The Financial-Securities Crimes Joint Investigation Division of the Seoul Southern District Prosecutors’ Office announced that they are conducting a search and seizure from the morning of the 30th at Koo’s residence in Hannam-dong, Seoul, and related corporate offices. Koo and her husband, Yoon Kwan, CEO of BlueRun Ventures, are accused of acquiring important undisclosed information related to a KOSDAQ-listed company’s capital increase and using it for stock trading.
On the 25th, the Civil Economy Research Institute filed a complaint against the couple at the Seoul Southern District Prosecutors’ Office, charging them with violating the Capital Markets Act and the Financial Investment Services and Capital Markets Act. The institute claimed that CEO Yoon predicted the stock price rise of the corporation he decided to invest in and had Koo buy stocks. They further alleged that Koo purchased shares intending to gain personal profit using undisclosed information and even encouraged employees to purchase stocks, with some actually buying. The institute criticized this as undermining the core principles of fairness, transparency, and trust in the capital market. Earlier this month, the Financial Services Commission informed the prosecution of the couple’s suspected violations of the capital markets law.