'Stock Manipulation' Influencer Yang Jung-won's Husband, Associates Indicted; Police Also Offered Bribes

In a significant development shaking South Korea's financial and law enforcement circles, a prominent wealthy influencer's husband, identified as Mr. Lee, has been indicted on charges of stock price manipulation and bribery. Lee, who has claimed to be the real-life inspiration for the movie 'Operation,' is accused of orchestrating a sophisticated scheme to artificially inflate the stock prices of a KOSDAQ-listed company. This alleged manipulation, carried out in collusion with stock manipulation experts and securities firm executives, involved numerous transactions across multiple accounts, resulting in illicit profits of at least 1.4 billion won.

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Mr. Lee, known as the husband of a famous influencer and a wealthy individual, has been indicted on charges of violating the Capital Markets Act and offering bribes.

The investigation, led by the Seoul Southern District Prosecutors' Office, took a dramatic turn when it uncovered Lee's alleged attempts to obstruct justice. Prosecutors allege that Lee offered money and lavish entertainment, including expensive visits to hostess bars, to police officers in an effort to quash investigations into fraud cases involving both himself and his influencer wife, Yang Jung-won. The probe involved extensive searches of police stations, including the Gangnam Police Station and the National Police Agency, as authorities sought to gather evidence of this alleged corruption.

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Lee is suspected of leading the manipulation of stock prices for a KOSDAQ-listed company in collusion with a stock manipulation expert, who claims to be the real-life model for the movie 'Operation,' and a current executive at a securities firm.

While the indictment includes Lee and two others, one police inspector implicated in the bribery scheme was not indicted, with prosecutors stating that the investigation is ongoing. The influencer wife, Yang Jung-won, remains under investigation and is currently considered a witness. This case is particularly notable as it marks one of the first instances where the leniency program for self-reporting (Leniency) has been utilized to initiate a stock manipulation investigation, following a confession from one of Lee's co-conspirators.

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He is also accused of offering money and entertainment services, worth several million won per session at a hostess bar, to police officers, including Inspector Song, in February and July of last year, to drop investigations into fraud cases involving his wife, Ms. Yang.

The alleged scheme involved Lee's 'O Family' group, which provided funds, nominee accounts, and other resources to facilitate the stock manipulation. They allegedly worked with a stock manipulation expert and a securities firm executive to artificially drive up the stock price of company 'N' from 1,926 won to a high of 4,105 won within a month. When the stock price plummeted due to a betrayal by one of the co-conspirators, a former K-League soccer player was reportedly brought in to help artificially boost the price again. The prosecution's charges are based on the alleged facts presented in the indictment, pending final confirmation through court proceedings.

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The investigation into stock price manipulation began when one of the co-conspirators applied for the leniency program and confessed to the Supreme Prosecutors' Office.