Lee Seung-gi’s father-in-law was sentenced to three years and six months in prison on September 29, after a Seoul court convicted him of manipulating KOSDAQ-listed stock prices to secure illicit gains. The ruling resulted in his immediate detention in court, marking a dramatic legal escalation in a high-profile family controversy.
Seoul Court Hands Down Prison Sentence and Fine for KOSDAQ Stock Manipulation
The 15th Criminal Division of the Seoul Southern District Court delivered its verdict in a mass sentencing hearing involving 13 defendants prosecuted for violations of the Capital Markets Act. Presiding Judge Noh Yu-kyung sentenced Mr. Lee, a 59-year-old identified in court proceedings as the father-in-law of singer and actor Lee Seung-gi and the father of actress Lee Da-in, to three years and six months behind bars. Alongside the prison term, the court imposed a 400 million won fine ($294,000) and ordered the forfeiture of approximately 125.5 million won.
Mr. Lee had previously stood trial without detention after being released on bail in 2025. Following the judge’s order on September 29, he was immediately taken back into legal custody. The judicial panel condemned the defendants’ actions with severe language during the hearing.
“The market manipulation crimes the defendants participated in undermine the capital market by distorting the healthy price-forming function of the market, making their culpability very grave. It is a typical crime that inflicts damage on numerous innocent investors and dampens investment enthusiasm.”
15th Criminal Division of the Seoul Southern District Court, via SBS
How Secondary Battery and Renewable Energy Stocks Were Inflated
Investigators detailed a sophisticated scheme involving multiple KOSDAQ-listed entities where the defendants artificially inflated share prices by promoting fabricated business ventures in high-technology fields. According to the Prosecution Service, the group executed manipulative orders for the secondary battery materials company Joongang Advanced Materials starting in November 2022 for approximately one year. Those trades drove the stock price upward from 490 won per share to 5,850 won per share—representing more than a tenfold increase.
A similar pattern emerged around the renewable energy firm Quantapia. The defendants utilized false disclosure documents, including a fabricated investment commitment letter claiming that an investment of approximately 100 billion won has been confirmed.
Prosecutors established that these deceptive disclosures allowed the group to pocket tens of billions of won in unfair profits at the expense of ordinary market participants.
Co-Defendants Face Heavier Penalties While Attorney Act Charges Fail
While the court handed down a multiyear term for Mr. Lee, other figures connected to the conspiracy received significantly harsher punishments. A 61-year-old former prosecution investigator identified as the leader of the criminal operation was sentenced to 10 years in prison, alongside a ₩24.0 billion KRW ($17.7 million USD) fine and a forfeiture order of approximately ₩6.01 billion KRW ($4.45 million USD). Investigators linked his fundraising efforts to plans intended to finance the overseas flight of Chairman Lee In-kwang, the main culprit behind the suspension of Lime Asset Management’s redemption.
At the same time, the court trimmed several allegations from the prosecution’s indictment. Mr. Lee was acquitted of violating the Attorney-at-Law Act regarding 30 million won he received after Quantapia’s trading was suspended in February 2024. Although the panel acknowledged the transfer of funds, judges ruled that the circumstances pointed toward passing money to another defendant rather than securing an unlawful bribe or lobbying fee.
A Legal Saga and the Decision to Sever Family Ties
The current conviction adds another chapter to a prolonged judicial history. Mr. Lee was previously indicted in 2016 for artificially boosting the stock price of a company named Corebit through false disclosures during a paid-in capital increase. That initial case resulted in a 2018 sentence of four years in prison and a 2.5 billion won fine, followed by an appellate acquittal and a Supreme Court remand in June 2025 instructing lower courts to enter a guilty verdict.
The recurring legal troubles severely strained family relations in the public eye. Lee Seung-gi married actress Lee Da-in—daughter of actress Kyeon Mi-ri and Mr. Lee—in 2023. When subsequent indictments surfaced, the singer’s agency, Big Planet Made, issued public statements addressing the fallout.
“Trust among family members has been damaged to a level that is difficult to restore, and after long consideration, my wife and I have decided to sever relations with her family. I deeply reflect on my careless remarks made last year without fully reviewing the issues related to my father-in-law. I believe that appropriate punishment must surely be served for illegal acts.”
Lee Seung-gi, via SBS