Singer and actor Lee Seung-gi’s father-in-law has been indicted for stock manipulation, earning illegal profits of ₩14 billion ($10 million USD). The scandal has forced Lee Seung-gi to publicly sever ties with his in-laws, apologizing to fans and victims affected by the financial crimes.
On May 15, the Seoul Southern District Prosecutors’ Office announced the indictment of 13 individuals, including Lee Seung-gi’s father-in-law, Mr. Lee (58). Eight were arrested for violating the Capital Markets Act by artificially inflating stock prices of three KOSDAQ-listed companies.
The group falsely promoted new business ventures to manipulate stock values. One company, Joongang Advanced Materials, saw its stock price surge from ₩490 to ₩5,860 in a year—a tenfold increase. Another firm, Quantapia, was used to siphon ₩6 billion through fake investment announcements. Even after trading suspensions, they spread rumors about an AI robot business linked to SIM card maker XCURE to further influence stock prices.
Mr. Lee also allegedly used insider information during company acquisitions to buy stocks under borrowed names, making an extra ₩100 million. Prosecutors revealed he paid ₩30 million upfront and promised ₩1 billion in success fees to a former investigator to resume trading. This investigator was previously tied to the Lime Asset Management scandal.
Before the indictment, Lee Seung-gi had already announced his decision to cut ties with his in-laws. On April 29, he released a statement expressing regret over his father-in-law’s repeated illegal activities.
“Although my father-in-law was previously fined in a retrial for illegal activities, he has now been indicted again for similar misconduct. Having waited with trust in family, I am devastated by his repeated wrongdoing.”
Lee Seung-gi married actress Lee Da-in in 2023, and the couple welcomed a daughter in February 2024. At the time of their marriage, critics pointed out that Lee Da-in’s stepfather had been on trial for stock manipulation since 2016. Lee Seung-gi initially asked the public not to attack his family, calling it a private matter.
However, the latest charges led to a stronger response.
“I deeply regret speaking rashly without thorough review last year. Due to this incident, the trust between families has been irreparably damaged. After long deliberation, my wife and I have decided to cut ties with my in-laws.”
He also apologized to victims affected by the stock fraud and vowed to uphold stronger moral values.
“Illegal activities must be met with proper punishment. I sincerely apologize to any victims who suffered because of my hasty judgment and to those who trusted and supported me.”
In June 2024, South Korea’s Supreme Court overturned a lower court’s acquittal of Mr. Lee, sending the case back for retrial. The scandal has sparked public backlash, with some questioning Lee Seung-gi’s initial defense of his in-laws.
Lee Seung-gi, known for his clean public image, has faced criticism but also support from fans who appreciate his transparency. His wife, Lee Da-in, has reportedly sided with him, agreeing to distance herself from her family.
The case highlights ongoing issues with stock manipulation in South Korea’s financial markets. Authorities are tightening regulations, but high-profile scandals continue to emerge. Legal experts predict severe penalties for those convicted, given the scale of the fraud.
This is not the first controversy involving Lee Seung-gi’s in-laws. His wife’s stepfather was previously fined for similar offenses, raising questions about due diligence before the marriage. However, fans argue that Lee Seung-gi should not be held responsible for his in-laws’ actions.
The singer-actor remains active in entertainment, recently receiving a Buddhist award for his philanthropy. Despite personal struggles, he continues working, with upcoming projects expected to proceed as planned.
Financial fraud cases involving celebrities’ families often attract heavy media attention in South Korea. Past incidents have led to public scrutiny affecting careers, but Lee Seung-gi’s prompt response may mitigate long-term damage.
Legal proceedings against Mr. Lee and his associates are ongoing. If convicted, they could face significant prison terms and fines. The case serves as a cautionary tale about the risks of stock market manipulation and its far-reaching consequences.
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