South Korean court sentences Lee Seung Gi’s father-in-law to prison for stock manipulation

The Seoul Southern District Court has sentenced the father-in-law of singer and actor Lee Seung Gi to three years and six months in prison for violating the Capital Markets Act. The defendant, a 59-year-old man, was found guilty of manipulating the share prices of several KOSDAQ-listed companies to secure illicit profits.

According to court findings, the group used deceptive tactics, such as claiming companies were pursuing lucrative new business ventures (referred to as ‘pearl’ projects) or had secured massive investments. In one instance, they allegedly inflated the stock price of a secondary battery materials company from 490 won to 5,850 won over a year. They were also accused of issuing false investment commitment documents for a renewable energy firm.

In addition to the prison term, the court imposed a 400 million won fine and an order to forfeit approximately 125.5 million won. While the defendant was acquitted of certain charges related to the Attorney-at-Law Act and specific manipulation involving an AI robot business due to insufficient evidence, the court emphasized that the crime was a “typical crime that harms the livelihoods of people” by distorting market functions and harming innocent investors.

A former prosecution investigator involved in the scheme received a 10-year prison sentence and a 24 billion won fine. The case has gained significant public attention due to Lee Seung Gi’s high profile; the singer previously announced his intention to sever ties with his in-laws following the initial investigation into these illegal activities.