Kim Seung-won’s alleged lobbying of GENENCELL draws scrutiny; complaint filed for violating the Capital Markets Act

[Financial News] Kim Seung-won, the nominee for minister of the Ministry of Justice, has been additionally reported on suspicion of violating the Capital Markets Act and other offenses in connection with the so-called “lobbying to secure approval for a new drug clinical trial” allegations.
On the 14th, Lee Jong-bae, a former Seoul city councilor from the People Power Party, filed a complaint with the Seoul Metropolitan Police Agency against Kim Seung-won, broker Mr. Yang, and Mr. Kang, the founder of biotech company GENENCELL, on suspicion of fraudulent unfair trading under the Capital Markets Act.
Lee alleged that Mr. Kang asked Kim Seung-won, through Mr. Yang, to secure approval for GENENCELL’s clinical trial in order to attract investment and boost the company’s stock price, and that Kim contacted the then head of the Ministry of Food and Drug Safety to request the approval.
He claimed, “Kim Seung-won was aware that approval for the clinical trial could affect GENENCELL’s corporate value and stock price.” He added, “If Kim contacted the head of the Ministry of Food and Drug Safety after hearing explanations about Mr. Kang’s possible sale and cashing out of existing shares, as well as the possibility of support for an election, there may be grounds to regard him as an accomplice in fraudulent unfair trading.”
Lee also raised suspicions that Mr. Kang sought to gain financial benefits by submitting false or manipulated clinical data to the Ministry of Food and Drug Safety, obtaining approval for the clinical trial, and then attracting investment and selling shares he held.
The Committee for the Protection of Ordinary People’s Livelihood also filed a complaint that day with the Seoul Metropolitan Police Agency against Kim Seung-won, Mr. Kang, and Mr. Yang on suspicion of abuse of authority, fraud, and attempted murder.
The committee alleged that GENENCELL obtained clinical-trial approval by submitting a report that deleted or omitted information, despite some hamsters dying during experiments and drug reflux and pulmonary enlargement being observed. It also claimed that Kim Seung-won would bear responsibility if he knew about these issues and nevertheless became involved in the lobbying process.
Kim Seung-won previously appeared as a witness in a related criminal trial and acknowledged contacting the then head of the Ministry of Food and Drug Safety. However, he denied any connection to lobbying or bribery, saying, “It was simply a matter of handling a civil petition.”
Meanwhile, Kim Seung-won’s confirmation hearing is scheduled for the 15th. The trial of broker Mr. Yang and GENENCELL founder Mr. Kang, who have been indicted on charges including promising to offer a bribe, is also scheduled for that day.
[email protected] Choi Seung-han Reporter