Genencel founder Kang sold 660,000 shares worth approximately 6.29 billion Korean won to KOSDAQ-listed Sejong Medical on October 19, 2021, shortly before the Ministry of Food and Drug Safety approved clinical trials for Genencel’s COVID-19 drug. Sejong Medical also acquired 5 billion Korean won worth of Genencel convertible bonds. The transaction followed lobbying efforts involving Yang, a broker close to Kim Seung-won, the nominee for Minister of Justice. On October 12, Kim asked Kim Kang-lip, then head of the Ministry of Food and Drug Safety, to expedite the approval process, and received confirmation that the request had been relayed to staff. Sejong Medical’s stock rose more than 15% when the approval was announced on October 27, 2021, before falling to the daily limit down and losing nearly 22% the next day. Genencel later scaled back its trial plans and temporarily halted the trial in May 2023, while the book value of Sejong Medical’s Genencel shares fell to zero by the end of 2022. Prosecutors also found that Kang submitted falsified animal-testing documents, omitted adverse events including hamster deaths, and sought 10.1 billion Korean won in government funding using manipulated materials. The Seoul Western District Court sentenced Kang in December 2024 to three years in prison, suspended for five years. It was not confirmed whether Kim knew about the falsified documents. Independent lawmaker Han Dong-hoon said Kim’s lobbying nearly allowed a life-threatening drug to reach the market and linked the episode to losses suffered by investors.