Shareholders of Sejong Medical, an investor in Genensel, are submitting a petition to the court demanding severe punishment related to allegations of Kim Seung-won's influence in the approval of a COVID-19 treatment clinical trial.
According to legal sources on September 7, the Sejong Medical Shareholder Alliance plans to submit a 'Petition for Severe Punishment of Affected Shareholders of Sejong Medical and Genensel' to the Seoul Western District Court and the Seoul High Court.
The Seoul Western District Court is currently hearing a case against former Genensel CEO Kang and broker Yang, who are facing charges related to bribery promises. Meanwhile, the Seoul High Court is reviewing an appeal regarding Kang and others for breach of the Special Act on the Prevention of Corruption.
Kang is accused of soliciting help from Yang to expedite the review of Genensel's clinical trial plan for a COVID-19 treatment through political channels. Yang reportedly conveyed this request to Kim, who was then the Minister of Food and Drug Safety, leading to Kim contacting the then-Director Kim Kang-rip to expedite the approval process.
The Shareholder Alliance is demanding that the court clarify the financial relationship between Kang and Yang, the discussions regarding the clinical trial approval, and the circumstances under which Yang utilized political connections. They also requested an investigation into whether Kim's contact with the Ministry of Food and Drug Safety was merely a routine inquiry or an attempt to influence the approval process.
In their petition, the alliance stated, "For the parts of the defendants' criminal acts that are acknowledged, we ask for strict punishment considering the scale of damages and the impact on the capital market." They argued that the prolonged trading suspension and the decline in stock prices should also be factored into the sentencing.
Sejong Medical, listed on the KOSDAQ, invested approximately 11.3 billion won in Genensel on October 19, 2021, after Kim contacted the Ministry of Food and Drug Safety. Subsequently, Genensel's clinical trial for the COVID-19 treatment was halted. The stock price of Sejong Medical continued to decline, leading to a trading suspension on March 29, 2024, at 412 won, followed by a decision for delisting due to a refusal of audit opinions.
On his way to the office for the confirmation hearing, Kim stated, "I take seriously that I should have been more cautious in the process of conveying inquiries," but he denied any wrongdoing, asserting, "I have never made improper requests to the Ministry of Food and Drug Safety, nor was the review conducted unfairly."
Meanwhile, the Citizens' Livelihood Countermeasure Committee filed a complaint with the Seoul Metropolitan Police Agency on September 4, requesting an investigation into Kim for violations of political funding laws, abuse of power, violations of the Anti-Corruption and Whistleblower Protection Act, and bribery allegations.
* This article has been translated by AI.
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