Husband of Pilates influencer Yang Jeong-won denies bribery charges at trial

The husband of Pilates influencer Yang Jeong-won, 37, denied all charges at trial Monday, including allegations that he manipulated the share price of a Kosdaq-listed furniture company and entertained police officers to suppress an investigation into his wife.

The 14th Criminal Division of the Seoul Southern District Court, presided over by Judge Lee Jeong-hee, held the second hearing Monday morning in the case against the defendant, identified only by his surname Lee, and five others charged with violating the Capital Markets Act. The court heard the defendants' responses to the charges brought at the previous hearing.

Lee and the other defendants are accused of manipulating the share price of a well-known Kosdaq-listed furniture company between December 2024 and April last year. Investigators found they executed a large volume of manipulative orders — 265 wash trades, 1,339 high-price buy orders and other transactions — involving at least 28.9 billion won ($18.8 million) worth of trades, or roughly 8.44 million shares bought and sold, artificially driving up the stock price.

During the investigation, prosecutors also found evidence that Lee had offered cash and gifts to active-duty officers at the Seoul Gangnam Police Station in connection with a criminal case involving his wife, Yang, and indicted him on bribery charges as well.

Lee's side acknowledged the basic facts but denied all charges Monday.

His defense attorney said Lee had never been briefed on or made aware of any share-price manipulation and denied that he held a leadership role in the scheme. The attorney acknowledged that Lee had knowingly used accounts held in other people's names, but said he had no awareness or intent that they were nominee accounts used for market manipulation.

Lee's defense also denied that the entertainment provided to police officers carried any quid pro quo.

"We acknowledge that the drinking gatherings took place," the attorney said, "but there was no consideration involved, as the meetings occurred after the outcome of Yang's case had already been determined."

The defense also argued that the investigation itself was unlawful, saying prosecutors had applied the bribery charge based on materials uncovered during a search and seizure conducted for the Capital Markets Act violation.

However, the Dong-A Ilbo reported Sunday that the indictment states Lee treated then-Gangnam Police Station investigation team leader Inspector Song at a Gangnam entertainment bar in February last year, spending about 510,000 won on the outing. Two days later, Inspector Song allegedly told the officer in charge to "call in the investigator and wrap it up quickly with no charges."

In July of the same year, Lee allegedly provided another entertainment bar outing worth about 550,000 won, followed by gifts including a luxury scarf totaling about 1 million won.

Prosecutors also secured evidence that Inspector Song told Lee during this period, "I'll let the results speak for themselves" and "Your wife's case will end well."

Yang had been sued by franchise operators of a Pilates franchise she had modeled for, on charges of fraud and violations of the Franchise Business Act. The operators alleged she was involved in exaggerating projected earnings in promotional materials and in collecting equipment rental fees under false pretenses.

The case was closed at the police level in December last year with a no-charge, no-referral decision. Suspicions of a cover-up subsequently emerged, drawing renewed public attention to the matter.

Yang appeared at the Gangnam Police Station on April 29 for a face-to-face investigation into the franchise fraud case and said regarding the allegations that her husband had lobbied police to suppress the case, "I hope the truth comes to light."