Genencell founder Professor Kang is awaiting an appellate ruling after receiving a three-year prison sentence, suspended for five years, in late 2024 for violating the Capital Markets Act, breach of trust and patent law. The case centers on efforts to turn a Castanospermum australe extract developed for shingles into a COVID-19 treatment during the 2020 pandemic, when expectations for domestic antibody treatments fueled bio-stock speculation. Genencell received 1.5 billion Korean won from KOSDAQ-listed KH Feelux in 2020, after announcing Phase 2 clinical trial completion in India and a 95% COVID-19 recovery rate. In 2021, Kang used political contacts and broker Yang to seek expedited Ministry of Food and Drug Safety approval, which became a condition for Sejong Medical's investment. Sejong Medical invested 11.3 billion Korean won on October 19, becoming Genencell's largest shareholder with 23% equity, while Kang sold 660,000 shares for 6.3 billion Korean won and disposed of 5 billion Korean won in convertible bonds. After formal approval on October 26, Sejong Medical shares began falling on October 27. Three funds sold all their holdings within two days for 80.8932 billion Korean won, earning about 18 billion Korean won, and the stock halved within five trading days. Kang was separately indicted with Yang over alleged attempts to bribe political figures.