Prosecutors Reject Warrant for Former KT&G Saengmyeong Science CEO Over Alleged Unfair Merger
[Asia Economy Reporter Seongpil Cho] The prosecution rejected the arrest warrant requested by the police against the former CEO of KT&G Life Sciences, who is accused of breach of trust during the merger process of a pharmaceutical company.
The Seoul Central District Prosecutors' Office returned the arrest warrants for former KT&G Life Sciences CEO Park Young-ho and a KT&G headquarters employee to the police on charges including breach of trust in the course of business.
KT&G has been suspected of inflating the corporate value of KT&G Life Sciences to merge with Youngjin Pharmaceutical in 2016. At that time, the Financial Supervisory Service rejected the merger report three times, citing potential harm to investors, but the merger was forced through in January 2017.
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Since May of last year, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency has been investigating 27 current and former executives of KT&G, Youngjin Pharmaceutical, and KT&G Life Sciences to determine if there were any issues during the merger process. In January of this year, they also conducted a search and seizure at KT&G headquarters.
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