Sejong Medical shareholders seek probe into alleged manipulation, cite 30,000 holders and 5 billion won losses

  • Sejong Medical shareholders demanded an investigation into alleged solicitation and stock-price manipulation.
  • 30,000 shareholders face estimated damages of 5 billion Korean won.
  • Rep. Park Jeong-hoon said whistleblower Jo remains unprotected amid delayed personal-protection review.

Shareholders of Sejong Medical who say they suffered losses from alleged stock-price manipulation demanded a thorough investigation into claims of solicitation for clinical approval involving Justice Minister nominee Kim Seung-won. Two victims, including Baek Kwang-jae, a representative of the actual shareholders’ alliance of Sejong Medical, made the demand at a press conference on the morning of the 11th at the office of Rep. Park Jeong-hoon of the People Power Party. They called for scrutiny of the roles of Genencell founder Kang Se-chan, broker Yang, nominee Kim and people affiliated with Kim’s office. The shareholders said investors bought Sejong Medical shares based on Genencell’s COVID-19 treatment development, clinical-trial expectations and public disclosures, while asking investigators to determine who benefited if large purchases were driven by specific information and existing shareholders or other entities later sold substantial amounts. They cited the speed of clinical approval as a reason to investigate possible solicitation through a reinvestigation or special counsel. Sejong Medical has approximately 30,000 shareholders, with estimated damages of 5 billion Korean won. Victims also described severe financial and personal consequences, including one investor moving to Jeju Island to work as a loader and another living in debt after investing wedding funds. The event also featured criticism of Democratic Party of Korea supreme council member Park Sun-won over allegations that she disclosed the identity of whistleblower Jo. Rep. Park Jeong-hoon said Jo had sought personal protection through the Anti-Corruption & Civil Rights Commission, but a delayed review had left him without protection. Unaffiliated Rep. Han Dong-hoon accused Park Sun-won and Democratic Party leader Kim Min-seok of violating whistleblower protection laws.

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Sejong Medical shareholders seek probe into alleged manipulation, cite 30,000 holders and 5 billion won losses - CoinPost Terminal