Prosecutors Conclude No Charges for Former Shinpoong Pharmaceutical CEO in 'Avoiding Losses with Non-Public Information'

[Financial News] Jang Won-jun, former CEO of Shinpoong Pharmaceutical, who was accused of avoiding hundreds of billions of won in losses by using undisclosed internal information related to the development of a COVID-19 treatment, has been cleared of charges.
Seoul Southern District Prosecutor's Office Financial Investigation Division 1 (Chief Prosecutor Im Se-jin) announced on the 18th that they have decided on a 'not guilty' verdict for Jang Won-jun, the second-generation founder of Shinpoong Pharmaceutical, who was accused of violating the Capital Market and Financial Investment Business Act (prohibition of using undisclosed important information).
Former CEO Jang was accused of knowing in advance that the COVID-19 treatment Shinpoong Pharmaceutical was conducting clinical trials for in April 2021 did not meet the evaluation criteria for Phase 2 clinical trials, and selling Shinpoong Pharmaceutical shares held by himself and Song Amsa through block deal transactions to avoid losses of about 36.9 billion won.
The prosecution determined that it was difficult to see that former CEO Jang used undisclosed important information, as they found that he decided on the block deal sale and communicated his intent to sell to the securities firm before knowing the results of the Phase 2 clinical trial.
After receiving the case from the Financial Services Commission's Securities and Futures Commission last February, the prosecution searched and seized eight locations, including the residences and offices of related parties, and investigated the responsible personnel to reach this conclusion.
A prosecution official stated, "We will continue to thoroughly investigate according to the law and principles, and carefully assess evidence relationships to ensure there is no injustice to those involved in the case."




welcome@fnnews.com Jang Yu-ha Reporter