After Kim Seung-won (金勝源), nominee for South Korea’s Minister of Justice, asked the Commissioner of the Ministry of Food and Drug Safety to act, alleged stock-price manipulation related to 世宗メディカル came to light. The company later received a delisting decision, and its stock price plunged.
Kim Seung-won (金勝源), nominee for Minister of Justice, met with reporters on the 7th and explained that there had been no improper solicitation directed to the Ministry of Food and Drug Safety, while claiming that the request was a public-interest activity to convey the matter to the public institution in attendance.
It was subsequently reported that, at the request of an acquaintance, he asked the Ministry of Food and Drug Safety on 12 October 2021 to expedite the processing of Genencell’s clinical trial plan. This is said to have triggered activity involving 世宗メディカル and led to the mobilization of funds.
Beginning the day after Genencell received clinical approval, 世宗メディカル’s stock price plunged from its high, and an estimated KRW 18 billion in funds moved over a short period. As a result, after trading in its shares was suspended, 世宗メディカル received a delisting decision in June this year, and its stock price fell by approximately 95%.
This sequence of events has raised concerns about the drivers of activity in the capital markets surrounding 世宗メディカル and its impact on investors.