Kang Mo, the founder of Genensel, was sentenced to four years in prison and taken into custody after an appeals court found him guilty of lobbying for clinical trial approvals related to COVID-19 treatments.
The Seoul High Court's Criminal Division 7, led by Judge Koo Hoe-geun, overturned the original sentence of three years in prison with a five-year probation, instead imposing a four-year prison term and a fine of 40 million won. The court ordered Kang's immediate detention due to concerns he might flee.
Kang was charged with submitting false animal test data to the Korean Intellectual Property Office and the Ministry of Food and Drug Safety, omitting adverse effects and other unfavorable information to secure clinical trial approval for a COVID-19 treatment being developed by Genensel in 2021.
The first trial court found him guilty of manipulating data, including intentionally omitting the fact that hamsters died during the experiments, to obtain approval for the clinical trial plan and subsequently receive government funding.
In the appeals trial, the nature of the 600 million won paid to broker Yang Mo and the issue of concealing criminal proceeds became central points of contention. The first trial had deemed the money a simple investment, but the second trial reversed this decision, finding Kang guilty.
The court noted that Kang had solicited expedited clinical trial approval from the head of the Ministry of Food and Drug Safety through lawmaker Kim Seung-won, and that he paid 600 million won to Yang as a bribe. The court criticized Kang for disguising the payment as a legitimate transaction by acquiring convertible bonds from Yang's company.
In explaining the sentence, the court condemned Kang's violation of research ethics and the societal repercussions of his actions. It stated, "As a university professor with advanced expertise, a high level of diligence and responsibility is required in drug development and clinical approval. Nevertheless, submitting false data that could directly impact human health solely for the purpose of expedited approval is highly condemnable."
The court further emphasized that during the national crisis of the COVID-19 pandemic, Kang inflated the potential for successful new drug development to boost stock prices and gain significant profits. While the company benefited, many ordinary investors who bought shares based on optimistic announcements suffered serious losses.
Separately, Kang is facing trial at the Seoul Western District Court for allegedly promising to provide 5 million won in political donations to Kim in exchange for expedited clinical approval.
Lawmaker Kim, who was implicated in the lobbying scandal, acknowledged receiving donations as a reward for facilitating the approval but was granted a non-prosecution decision by the prosecution during the Yoon Suk-yeol administration, citing difficulties in establishing the illegality of the solicitation itself.
* This article has been translated by AI.
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