'Stock Manipulation Allegations'—Detention Warrant for Well Biotech Chairman Dismissed Again... Will He Be Indicted Without Detention?

[Financial News] The Kim Keon Hee Special Prosecutor Team (led by Special Prosecutor Min Jung-ki) has once again failed to secure an arrest warrant for Yang Namhui, Chairman of Well Biotech, who is under suspicion of stock manipulation.
On the 19th, Lee Jung-jae, a judge in charge of warrants at the Seoul Central District Court, dismissed the arrest warrant for Chairman Yang, who faces charges of violating the Capital Markets Act, aggravated breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, and embezzlement. The court explained, "Even after considering the additional and submitted evidence, there are still disputes regarding the alleged crimes."
Yang is accused of deceiving investors in 2023 by making it appear that Well Biotech and SAMBU CONSTRUCTION would participate together in the Ukraine Reconstruction Project, thereby securing illicit gains. Kihun Lee, the former chairman of Well Biotech who also served as vice chairman of SAMBU CONSTRUCTION, is identified as the link between the two companies. The Kim Keon Hee Special Prosecutor Team considered Lee a key figure in the alleged stock manipulation involving SAMBU CONSTRUCTION and Well Biotech and has been investigating him. At that time, investors reportedly gained 40 billion KRW in capital gains through the issuance and sale of convertible bonds (CB) during the period when both companies were grouped as Ukraine reconstruction-related stocks.
Last month, the special prosecutor team also requested an arrest warrant for Chairman Yang, but it was dismissed. The court then stated, "There is insufficient evidence to justify detaining Yang regarding his involvement in the main charges and the attribution of profits, and the risk of flight or destruction of evidence is not concrete enough to warrant detention." After a month of supplementary investigation, the team reapplied for an arrest warrant.
With the special prosecutor team again failing to secure Yang's custody, the final phase of the 'stock manipulation allegations' investigation is expected to face setbacks. While additional and supplementary investigations are being considered, with the investigation period set to expire on the 28th, the possibility of indictment without detention is also being weighed.
theknight@fnnews.com Jung Kyung-soo Reporter