"Room Salon Entertainment Provided to Police" Allegation... Yang Jungwon's Husband Denies Any Link to Wife's Case, Admits Drinking Session

Yang Jungwon's Husband Denies Most Charges at First Trial
"Entertainment for Police Not Related to Wife's Case"

The husband of broadcaster and former Pilates instructor Yang Jungwon (37), who is accused of colluding with stock price manipulation forces to gain 1.4 billion won in unjust profits and of providing entertainment such as room salons and bribes to an active-duty police officer in an attempt to cover up his spouse's criminal case, has denied most of the charges during the trial.

Pilates instructor turned broadcaster Yang Jungwon. Instagram capture

On July 6, the 14th Criminal Division of the Seoul Southern District Court (Presiding Judge Lee Jeonghee) held a trial for Lee and five others who are accused of violating the Financial Investment Services and Capital Markets Act, the Act on Real Name Financial Transactions and Confidentiality, among other charges.

'KOSDAQ Stock Price Manipulation' 1.4 Billion Won in Unjust Profits ... 'Investigation Cover-Up' Allegations Also Raised

Lee, who is the husband of broadcaster Yang Jungwon, was brought to trial for allegedly using multiple borrowed-name securities accounts to place 265 coordinated and fictitious trades, as well as 1,339 high-priced buy orders, in KOSDAQ-listed DUOBACK shares from December 2024 to April of the previous year. The prosecution believes Lee and others traded at least 28.9 billion won in total, earning about 1.4 billion won in unjust profits, and indicted Lee as the alleged ringleader.

During the investigation, prosecutors also uncovered that Lee offered money to an active-duty police officer at the Gangnam Police Station in Seoul while soliciting favors related to Yang's criminal case, adding bribery charges. Lee is also accused of providing entertainment at adult entertainment establishments to the police officer and others on two occasions.

Broadcast personality Yang Jeongwon, a former Pilates instructor. Instagram capture

Previously, Yang was sued by franchise owners of a Pilates franchise where she had worked as a model, on charges of fraud and violation of franchise business law. The franchisees claimed Yang exaggerated expected profits in promotional materials and was involved in misappropriating payments for equipment rentals and other fees.

However, in December of last year, police decided not to refer the case for prosecution, determining there was no evidence of wrongdoing. Afterward, as suspicions of investigation cover-up arose, the case once again drew public attention.

"Meeting Took Place After The Case Concluded... No Quid Pro Quo," Defense Claims

Lee's attorney acknowledged at trial that Lee did meet with the Gangnam police officer for drinks, but argued, "The meeting took place after the outcome of Yang's case had been determined, so there was no quid pro quo."

Regarding the allegations of stock price manipulation, the attorney stated, "We completely deny the allegation that Lee acted as a ringleader," adding, "He never heard any explanation about stock manipulation nor was he aware of it." On the use of borrowed-name accounts, the defense said, "He was aware that third-party accounts were being used in the normal process of acquiring shares, but he had no intention or awareness that these accounts were being used for stock price manipulation."

In addition, the defense argued, "Since the bribery charges were based on evidence gathered through a search and seizure related to the violation of the Capital Markets Act, the investigative process itself was unlawful."

'First Stock Price Manipulation Leniency Case'... Investigation Launched After Whistleblower Application

The full details of this case came to light when one of the accomplices in the stock price manipulation ring applied for 'leniency for voluntary reporters' with the Supreme Prosecutors' Office. This is the first investigation into stock price manipulation using the leniency system since its introduction in January 2024.

This content was produced with the assistance of AI translation services.