'Wellbiotech Stock Manipulation' Former CEO Seohyun Koo Faces Detention Decision... Verdict Expected Tonight

Charges Include Fraudulent Trading Under the Capital Markets Act

Seohyun Koo, former CEO of Wellbiotech, who is suspected of participating in stock price manipulation involving Wellbiotech, appeared in court on October 29 for a detention review. The decision on whether he will be detained is expected as early as tonight.

Seohyun Koo, former CEO of Wellbiotech. Yonhap News Agency

Judge Park Jungho, the chief judge in charge of warrants at the Seoul Central District Court, began the substantive review of Koo's arrest warrant at 10 a.m. on the same day.

The special prosecutor team led by Min Jungki, which is investigating allegations related to First Lady Kim Keonhee, requested an arrest warrant for Koo on October 27 on charges of fraudulent trading under the Capital Markets Act, breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, concealment of evidence, and aiding a suspect's escape.

Koo is accused of deceiving investors into believing that Wellbiotech would participate in Ukraine's reconstruction project around May 2023, thereby engaging in stock price manipulation. The special prosecutor suspects that the scheme was carried out in a manner similar to the stock price manipulation case involving Sambu Construction during the same period.

Wellbiotech is a company whose largest shareholder is Lee Iljun, chairman of Sambu Construction, and it attended the Ukraine Reconstruction Forum in May 2023. Lee Iljun is the largest shareholder of the company, and it participated in the Ukraine Reconstruction Forum in May 2023.

Subsequently, as Wellbiotech was classified as a "Ukraine reconstruction theme stock," its share price soared along with Sambu Construction. During this period, investors reportedly gained about 40 billion won in capital gains through the issuance and sale of convertible bonds. At that time, Wellbiotech's stock price surged from the 1,400-1,500 won range to just over 5,000 won.

Koo is also accused of assisting the escape of Lee Gihun, former vice chairman of Sambu Construction and chairman of Wellbiotech, who was indicted for gaining 36.9 billion won in illicit profits through Sambu Construction’s stock price manipulation. Lee, considered the key figure in the Sambu Construction stock price manipulation case, fled after a special prosecutor's arrest warrant was issued in July and was apprehended 55 days later in Mokpo, Jeollanam-do. He was subsequently indicted and detained on charges of violating the Act on Capital Markets and Financial Investment Business.

This content was produced with the assistance of AI translation services.