South Korea’s Financial Supervisory Service (FSS) concluded that Genencell engaged in unfair practices aimed at inflating stock prices during its 2020–2021 COVID-19 drug development efforts. The regulator found that Genencell falsely promoted receiving Indian clinical-trial approval, helping drive a 29.9% one-day rise in Philooks, which had invested in Genencell. FSS records said the Indian procedures concerned designation of the drug as a natural product, not approval for a COVID-19 treatment, and that the drug was not under consideration by India’s Central Drugs Standard Control Organization (CDSCO). The FSS also examined Genencell’s parent company, Sejong Medical, after sharp share-price movements around October 2021, but withheld documents from the National Assembly citing possible effects on ongoing trials. Genencell later administered the drug to 93 people in South Korean trials, with no serious side effects reported, although earlier trial-approval documents had omitted information including hamster deaths. The case also involves broker Yang, who had sought regulatory assistance through Kim Seung-won and later received commendations at Korea Brand Awards events before filing for bankruptcy in 2023.