'Insider Trading' ShillaJen Executive Director Also Detained
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[Asia Economy Reporter Yoo Byung-don] Following the arrest of Moon Eun-sang, CEO of SillaJen, on charges of using undisclosed information to sell stocks and avoid losses, it has been confirmed that the company's former executive director was also arrested on the same charges.
The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Seo Jeong-sik) announced on the 28th that former executive director A of SillaJen was arrested on the 20th on charges of violating the Capital Markets and Financial Investment Business Act (use of undisclosed information).
The prosecution believes that A used undisclosed information indicating poor results from the Phase 3 clinical trial of the anticancer drug Pexavac targeting liver cancer to sell SillaJen stocks, thereby avoiding losses amounting to approximately 6.4 billion KRW.
SillaJen's stock price had soared at one point due to expectations for Pexavac's development, but it plummeted after the clinical trial was halted.
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Former CEO Lee Yong-han (54) and former auditor Kwak Byung-hak (56), a relative of CEO Moon, were also arrested and indicted on the same charges.
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