Police Conduct Search and Seizure at KT&G Seoul Headquarters Over Allegations of Unfair Merger Involving Yeongjin Yakpum

[Asia Economy Reporter Lee Gwan-joo] The police investigating allegations of an unfair merger between KT&G Life Sciences and Youngjin Pharm conducted a sudden search and seizure at the KT&G Seoul headquarters.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency deployed about 20 investigators on the morning of the 6th to carry out a search and seizure at the KT&G Seoul headquarters located in Gangnam-gu, Seoul. This search and seizure was reportedly conducted to secure materials related to the merger between KT&G Life Sciences and Youngjin Pharm.

KT&G is suspected of inflating the corporate value of KT&G Life Sciences in 2016 to merge with Youngjin Pharm. The Financial Supervisory Service rejected the merger report three times at the time, fearing damage to investors, but the two companies pushed ahead with the merger in January 2017.

Since beginning the investigation in May of last year, the police have been examining whether there were any issues during the merger process involving KT&G, Youngjin Pharm, and former and current executives of the former KT&G Life Sciences. The police plan to summon and investigate related parties sequentially once the analysis of the seized materials is complete.

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