Prosecutors seek four years for broker in ‘Kim Seung-won new-drug lobbying’ case; request forfeiture of 600 million won

[Financial News] The Public Prosecution Office has sought a four-year prison sentence for a broker indicted on charges of lobbying lawmaker Kim Seung-won to secure approval of a clinical trial plan for a COVID-19 treatment.
The Seoul Western District Court’s Criminal Division 10, presided over by Judge Sung Jun-gyu, held a final hearing on the 12th for broker Yang and Genencell founder Mr. Kang, who were indicted on charges including promising to offer bribes.
The Seoul Western District Public Prosecution Office asked the court that day to sentence Yang to four years in prison and order forfeiture of 601,101,369 won. It sought a six-month prison sentence for Mr. Kang.
The two are accused of asking the Ministry of Food and Drug Safety, through Kim, who was then a member of the National Assembly, to expedite approval of a clinical trial plan for a COVID-19 treatment being developed by Genencell, and of promising to provide Kim with 5 million won in political contributions in return, among other allegations.
According to the Public Prosecution Office, Mr. Kang asked Yang for help in October 2021 when approval of the clinical trial plan was taking longer than expected. At Yang’s request, lawmaker Kim then asked the head of the MFDS to expedite the plan’s processing, and investigators found that the ministry approved it that same month.
The Public Prosecution Office believes Yang received compensation for arranging the matter, among other things. The court also accepted as evidence that day the appellate ruling in a separate case involving Mr. Kang, explaining that the connection between the convertible bonds worth 600 million won received by Yang and his arranging activities was one of the main issues in this trial.
Mr. Kang denied the allegations of lobbying during questioning as a defendant that day. He claimed that he had not asked Yang to improperly expedite approval of the clinical trial, but had merely conveyed a request for the review to be completed within the processing period set by the government. He also denied promising a political contribution in exchange for lobbying through Kim.
Mr. Kang acknowledged that after the clinical trial was approved, he tried to send a contribution to Kim’s fundraising committee account. However, the contribution limit had been reached, so no transfer was made. He denied that it was a quid pro quo, saying that if it had been payment for the approval, he would have tried to make the payment again later.
In his closing statement, Yang also acknowledged delivering clinical-trial-related materials to Kim’s office and asking for an expedited review by the MFDS, but maintained, “I did not violate any regulations or ask for improper treatment.” He also said the political contribution was not promised in exchange for handling the request.
In a separate case, Mr. Kang was indicted on charges including breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes and violating the Act on the Concealment of Criminal Proceeds. Last September, an appellate court sentenced him to four years in prison and a fine of 40 million won, and he was taken into custody in court. The appellate court at the time found a connection between the lobbying through Kim for approval of the clinical trial plan and the 600 million won paid to Yang.
Kim was also investigated on suspicion of agreeing to receive 5 million won in contributions after relaying a request to the head of the MFDS at the behest of Yang and others, but was granted a deferred prosecution decision in 2024.
The court plans to deliver its verdict for the two defendants at 10 a.m. on January 14 next year.

[email protected] Choi Seung-han Reporter