[Invest&Law] Trial Resumes for Lee Woong-yeol in 'Invossa Suspicion', Verdict Expected Within the Year

Published 21 Feb.2024 11:18(KST)

Investor and Victim Return to Court Dispute
Appeal Trial Verdict Concludes Related Case
First Trial Results Expected Within This Year

The trial of Lee Woong-yeol, Honorary Chairman of Kolon Group, and Kolon Corporation, who were indicted on charges including involvement in the manipulation of the components of the osteoarthritis treatment Invossa-K, is expected to resume. This follows the release of appellate court decisions related to other criminal and administrative cases concerning the Invossa component manipulation allegations. In particular, since the examination of key witnesses has been completed, the first trial verdict is expected within this year.

Along with this case, lawsuits for damages filed by about 1,000 small investors against the Honorary Chairman Lee, Kolon Life Science, and Kolon TissueGene Corporation, as well as lawsuits filed by victims who received Invossa against the corporations and executives, are also predicted to resume, as they have been awaiting the appellate court rulings.

Recently, appellate court decisions related to the Invossa component manipulation allegations, which were ongoing at the Seoul High Court, have been issued consecutively. The Administrative Division 10 of the Seoul High Court (Presiding Judge Seong Su-je, High Court Judges Yang Jin-su and Ha Tae-han) dismissed Kolon Life Science’s appeal against the Minister of Food and Drug Safety in the appeal case concerning the cancellation of the manufacturing and sales approval, thereby upholding the first trial ruling where the plaintiff lost.

Former Kolon Group Chairman Lee Woong-ryul, suspected of falsely reporting the ingredients of the osteoarthritis gene therapy drug Invossa-K (Invossa), is entering the Seoul Central District Court on June 30, 2020, for a warrant hearing. Photo by Kim Hyun-min kimhyun81@

This result came 2 years and 11 months after the case was filed at the Seoul High Court in March 2021. The sentencing date was initially set for September of the same year after the conclusion of arguments in July but was postponed four times?to November, January 19, and February 2 of this year?before the ruling was made. It is reported that the volume of records was extensive and that the court was also waiting for the appellate court decisions on related criminal cases.

Earlier, the Criminal Division 6-1 of the Seoul High Court (High Court Judges Won Jong-chan, Park Won-cheol, and Lee Ui-young) in October last year dismissed the prosecution’s appeal and upheld the not guilty verdict for Kim, the former head of the Bio New Drug Research Institute, who was indicted on suspicion of manipulating Invossa components. For Cho, the former head of the clinical development team, a fine of 10 million KRW was imposed. This was an increase from the original trial, which had imposed a 5 million KRW fine for some bribery charges, as the appellate court additionally recognized guilt for some fraudulent acts.

This case also saw its second trial verdict 2 years and 7 months after being filed at the Seoul High Court in March 2021. The prosecution has appealed, and the case is currently under review by the Criminal Division 3 of the Supreme Court. With the conclusion of appellate court rulings on related cases, the first trial cases that had been on hold are expected to resume.

The trial of Honorary Chairman Lee Woong-yeol and Kolon Corporation, currently underway in the first trial on charges related to the Invossa component manipulation allegations, has a preparatory hearing scheduled for the end of this month. Several examinations of key witnesses, including Noh Moon-jong, CEO of Kolon TissueGene who oversaw the initial Invossa research last year, have been conducted multiple times.

Notably, since two of the witnesses reside in the United States, witness examinations were conducted using the video trial program VidyoConnect. This case also experienced periods without scheduled trial dates to await the outcomes of the two other cases.

The court plans to hold a preparatory hearing on the 26th. Since the examination of key witnesses has already been conducted, the first trial verdict is expected within this year.