Editorials
Reinvestigate lobbying, stock manipulation claims
Authorities must swiftly investigate whether political lobbying, clinical trial approval and suspected stock manipulation were connected.
Justice Minister nominee Kim Seung-won asks reporters to refrain from questioning him after entering an elevator on his way to his confirmation hearing preparation office at the Jeokseon Hyundai Building in Jongno District, central Seoul, on Sept. 8.
YONHAP
Allegations that Justice Minister nominee Kim Seung-won sought favors for approval of a Covid-19 treatment clinical trial are widening into suspicions of lobbying and stock manipulation involving figures in the ruling camp. Released recordings repeatedly suggest that a broker surnamed Yang tried to reach ruling-party figures to secure clinical trial approval for Genencell, the drug developer.
This case cannot end with an examination of the allegations against Kim alone. Kim himself said approval would mean “making hundreds of billions of won.” In October 2021, shortly before Genencell received clinical trial approval from the Ministry of Food and Drug Safety, Kosdaq-listed Sejong Medical invested 11.3 billion won ($7.8 million) and became its largest shareholder.
The problem is Sejong Medical’s suspicious share price movements. Immediately after regulatory approval, heavy selling by financial investors halved the stock price before it surged again that December. Allegations also emerged that forces previously involved in stock manipulation entered the company and ultimately left it an empty shell. Sejong Medical was ordered delisted in June, leaving many retail shareholders with heavy losses. That makes Kim’s explanation that he was merely conveying a “public-interest petition” difficult to accept.
On Monday, some Sejong Medical shareholders petitioned a court to severely punish Genencell’s founder, surnamed Kang, who is standing trial. President Lee Jae Myung has vowed to financially ruin stock manipulators. Authorities must thoroughly determine whether the clinical trial was approved properly, who gained financially from it and whether market manipulation occurred in the process. These questions go directly to whether political influence, regulatory decisions and movements in the company’s share price were connected.
Kim, who received a suspended indictment in late 2024, was recently reported again to police, with the case assigned to Yeongdeungpo Police Station. Given the allegations already raised and the seriousness of the matter, this is not a case that should simply be left to a local police station.
Police dragged out their investigation into corruption allegations against former Democratic Party floor leader Kim Byung-kee for a year, seeking an arrest warrant only after an investigative review committee demanded swift action. Repeating such behavior would destroy public trust. The public has reason to expect a prompt investigation when allegations involve a nominee for the country’s top law enforcement post.
Senior police leadership should oversee the case directly and cooperate with financial regulators to investigate all related allegations swiftly. If police again stall or take a passive approach, there will be no alternative but to appoint a special counsel and entrust the investigation to it.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
