Genencell is under police investigation over an alleged investment fraud case involving approximately 10 billion Korean won, adding to scrutiny surrounding the pharmaceutical company. Sejong Medical filed a complaint against Genencell representative A under the Special Act on the Aggravated Punishment of Specific Economic Crimes for fraud. Sejong Medical acquired 5 billion won of Genencell convertible bonds (debt that can convert into shares) in October 2021 and bought 660,000 Genencell shares held by A for approximately 6.3 billion won, becoming Genencell's largest shareholder. The company says it suffered about 11.2 billion won in losses because A failed to properly disclose critical information about Genencell and its new-drug development. The Bundang Police Station transferred the case to the Anti-Corruption and Economic Crime Investigation Unit of the Gyeonggi Nambu Provincial Police Agency in December 2025, citing the scale of the alleged damages and the seriousness of the case. Genencell is also central to allegations that Justice Minister nominee Kim Seung-won sought clinical trial approval for its COVID-19 treatment from then-Ministry of Food and Drug Safety Commissioner Kim Gang-lip in 2021 after being approached by broker B on behalf of A. Sejong Medical's stock rose after news of Genencell's clinical trial progress but later plunged as development was delayed, and trading in the shares is currently suspended.