Kim Keon Hee Under Fire: Special Counsel Probes Ties to Ukraine Reconstruction and Stock Manipulation

The special counsel team tasked with investigating multiple allegations concerning former first lady Kim Keon Hee summoned key executives of Eurasia Business Association and Sambu Construction on Tuesday to probe ties between Kim and organizations involved in Ukraine reconstruction projects in 2023.

According to the special counsel, a former president of Eurasia Business Association — a Korea-based consulting agency that organized the Ukraine Recovery Conference in 2023 — was questioned about the conference’s planning and potential attempts to manipulate stock prices of a mid-sized South Korean construction firm.

Investigators also examined the association’s connections to former Land Minister Won Hee-ryong, former CEO of Black Pearl Invest Lee Jong-ho, and other Eurasia Business Association executives.

This move is seen as an effort to gather evidence linking those involved in one set of allegations against Kim.

The allegations center on a dramatic surge in Sambu’s stock price. Shares skyrocketed within a three-month period amid market rumors that the company was poised to participate in Ukraine reconstruction projects in 2023.

The stock price surge allowed former and current owners and executives of the company to sell shares, reaping profits worth tens of billions of won.

The Sambu case first caught public attention after a controversial message from Lee in July 2024.

The company had previously announced signing a memorandum of understanding for cooperation on Ukraine’s postwar reconstruction efforts with multiple organizations, including the Eurasia Business Association, in 2022.

While the stock price showed no significant change initially, the Democratic Party of Korea later argued that the company’s trading volume and stock price surged after Lee posted a text message saying, “Check Sambu tomorrow” in a group chat reportedly involving high-ranking military officials and a former Presidential Security Service official, among others, on May 14, 2023.

On May 16, the then-presidential couple visited Ukraine to discuss reconstruction projects with Ukrainian President Volodymyr Zelenskyy.

The company gained attention as a Ukraine reconstruction-themed stock and hit the daily price ceiling after the former land minister and major shareholders of Sambu attended the Ukraine Recovery Conference on May 22.

Sambu’s stock price skyrocketed as the company announced multiple memorandums of understanding with local Polish governments during the conference and promoted these agreements through press releases.

Having remained below 2,000 won (approximately $1.50) until May, the stock price surged to 5,500 won by July, coinciding with Yoon and Kim’s second visit to Ukraine for another summit.

The Democratic Party raised suspicions of stock manipulation and suggested Kim’s potential involvement, citing her personal ties with Lee, who was suspected in another case of stock price manipulation involving Deutsch Motors, in which the former first lady is also implicated.

The minor opposition Rebuilding Korea Party also questioned how Sambu, with minimal overseas experience limited to a single road construction project in Pakistan in 2021, managed to attend the Ukraine Recovery Conference alongside the land minister.

When Sambu’s CEO, former and current owners were previously accused of inflating the stock price in April this year, authorities did not file a complaint against the former first lady and Land Minister Won, citing lack of evidence of criminal activity.

The special counsel team is scheduled to question Lee Il-jun, chairperson of Sambu Construction, on Wednesday as it expands its investigation into the stock price manipulation case.