Broker’s Trial Over Alleged Solicitation of Kim Seung-won Postponed; Attention Turns to Kang’s Appellate Ruling

On the 15th, the day Kim Seung-won, the nominee for Minister of Justice, faced a confirmation hearing, a trial was held for broker Yang and Kang, the founder of biotech company Genencell. They are central figures in allegations that Yang solicited approval for a new-drug clinical trial. The court decided to proceed with closing arguments after reviewing the outcome of a separate criminal trial against Kang.
The Seoul Western District Court’s Criminal Division 10, presided over by Judge Sung Jun-gyu, held a hearing that afternoon for Yang and Kang on charges including promising to provide a bribe. The court said it needed to review the appellate ruling in Kang’s separate breach-of-trust and embezzlement case because it was considered related to the current proceedings. The next hearing for closing arguments was therefore scheduled for 4 p.m. on November 12.
As Yang arrived at court, he did not answer reporters’ questions, including whether he admitted to improperly soliciting Kim Seung-won, what relationship he had with Kim, and why he had requested personal protection. Kang, who arrived later, also remained silent when asked why he had tried to send 5 million won and whether he had delivered compensation in another form after being unable to make the transfer.
Prosecutors believe Yang solicited Kim Seung-won at Kang’s request so that Genencell could obtain approval for a new-drug clinical trial, and agreed to receive money from Kang in return.
According to prosecutors, Yang asked Kim Seung-won to help secure approval for Genencell’s clinical trial while mentioning the company’s efforts to attract investment and its plans to go public. Kim is known to have subsequently contacted the then-Minister of Food and Drug Safety regarding Genencell’s clinical-trial approval.
Kim Seung-won appeared as a witness in the trial on June 11. Kim acknowledged contacting the Minister of Food and Drug Safety but maintained that the contact had nothing to do with improper solicitation or bribery. Kim’s position was that the contact was simply part of handling a civil petition.
Yang has also acknowledged asking Kim Seung-won about the clinical-trial approval but has denied agreeing to receive money from Kang in return. Yang has also been charged with involvement in the acquisition of convertible bonds (CB) and the alleged personal use of company funds.
Kang is also on trial in a separate breach-of-trust and embezzlement case involving Genencell’s clinical-trial approval and investment process. The appellate ruling in that case is scheduled for the 30th.
Ahead of the trial, complaints against Kim Seung-won continued to be filed. Lee Jong-bae, a former Seoul Metropolitan Council member from the People Power Party, filed a complaint the previous day with the Seoul Metropolitan Police Agency against Kim, Yang, and Kang for alleged fraudulent unfair trading under the Capital Markets Act. The complaint alleges that Kim was involved in efforts to use the clinical-trial approval to attract investment and drive up the stock price. The Committee for the Protection of Ordinary People’s Livelihood also filed a complaint the same day against Kim, Yang, and Kang on charges including abuse of authority and fraud.
[email protected] Choi Seung-han Reporter