Officials from the special counsel team investigating allegations against former first lady Kim Keon Hee conduct search and seizure operation at the headquarters of Well Biotec in Gangnam, southern Seoul, Thursday. (Yonhap)
Officials from the special counsel team investigating allegations against former first lady Kim Keon Hee conduct search and seizure operation at the headquarters of Well Biotec in Gangnam, southern Seoul, Thursday. (Yonhap)

Kim questioned for third time since arrest

Special counsel team investigating suspicions involving former first lady Kim Keon Hee searched the headquarters of Well Biotec — a company affiliated with midsized local builder Sambu Construction — over suspected stock manipulation.

Well Biotec is suspected of manipulating its stock price by falsely promoting participation in the reconstruction project in Ukraine, announced when Yoon was in power.

The team explained that Thursday’s raid is a continuation of past efforts to find evidence that leads to Kim’s possible involvement in the Sambu stock manipulation case and a surge in Well Biotec’s stock price.

The company reportedly attended the Ukraine Recovery Conference with Sambu, signed a memorandum of understanding with a local logistics firm during the conference and promoted the agreements through press releases.

Though shares had remained below 1,500 won ($1.07) prior, they skyrocketed to 4,610 won from May to July 2023, showing a similar upward trend to that of Sambu Construction.

According to the special counsel team, investigators carried out search and seizure operations at 10 different locations, including Well Biotec subsidiaries, related companies and residences of company officials.

The team also said convertible bonds were issued and sold, and investors reportedly profited around 40 billion won in capital gains in three months.

The team also confirmed that Lee Jong-ho made a profit of approximately 20 million won in a single day by trading Well Biotec stocks. Lee is the former CEO of Black Pearl Invest, who was suspected of another case of stock price manipulation with imported car dealer Deutsch Motors, which the former first lady was also accused of taking part in.

Though Lee was summoned for face-to-face questioning in the special counsel investigation into his alleged role in the Deutsch Motors stock manipulation case on Thursday morning, some have speculated that the team could question him on topics regarding the Sambu stock price manipulation case.

On Thursday afternoon, the former first lady appeared for her third special counsel questioning since being detained under a warrant issued over evidence-tampering concerns.

But the special counsel announced that Thursday’s questioning was conducted to probe Kim’s alleged bribery schemes linked to the shaman Jeon Seong-bae and the Unification Church, among other suspicions.

The special counsel team previously conducted two interrogations, on Aug. 14 and Monday, but Kim exercised the right to remain silent for most of the questioning. The former first lady reportedly remained silent in Thursday's questioning as well.

Meanwhile, Sambu Construction Vice Chair and Well Biotec Chair Lee Ki-hoon has been on the run since failing to appear for a detention warrant hearing on July 17. Police added Lee, who is accused of illegally manipulating Sambu Construction’s stock from May to September 2023, to their wanted list on Wednesday.


sj_lee@heraldcorp.com