“From now on, in the new South Korea, the rule of law and order must be upheld. Gentlemen, suspects in crimes, foreign countries will no longer be a safe haven for escape.” South Korean President Lee Jae-myung said this following the arrest of Koo Bon-hyun, who had been wanted for eight years on suspicion of manipulating stock prices.
Koo Bon-hyun, 57, is a representative of the third generation of the family linked to South Korean conglomerate LG. He was arrested in Cambodia and returned to South Korea. South Korean police arrested him on November 9 to investigate him on charges related to the capital market.
What are the suspicions against Koo Bon-hyun
According to the investigation, between February 2016 and December 2017, Koo Bon-hyun acquired, without investing his own capital, a company listed with the Korea Securities Dealers Association. He was then suspected of publishing false announcements about developments favorable to the company, thereby driving up the share price.
Police also claim that after the prices rose, shares held in the names of nominees were sold. In this way, Koo Bon-hyun is suspected of obtaining an illicit benefit. The alleged actions are being investigated as suspected fraud through illegal capital market transactions.
The president’s message
Lee Jae-myung shared a post on X about Koo Bon-hyun’s arrest. He made the comment on the day he took part in a meeting devoted to capital market development policies at the representative center of the Korea Exchange in Seoul’s Yeouido district.
The case highlights the actions of South Korean authorities against suspected capital market violations and the pursuit of suspects who have left the country. Following Koo Bon-hyun’s return to South Korea, the investigation against him is continuing.