[Asia Economy Reporter Yoo Byung-don] The prosecution investigating allegations of insider trading involving the bio company Sillajen has secured the custody of key suspects.
The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Seo Jeong-sik) announced on the 10th that it filed arrest warrants for former CEO Lee Yong-han (54) and former auditor Kwak Byung-hak (56) of Sillajen the previous day.
They are suspected of using internal company information to sell large amounts of stock before the public disclosure of the suspension of clinical trials for Sillajen's immuno-oncology drug 'Pexavac,' thereby avoiding significant losses.
Sillajen's stock price once soared on expectations for Pexavac's development but plummeted after the suspension of clinical trials was revealed.
Lee served as CEO from 2008 to 2009, and Kwak, a relative of current CEO Moon Eun-sang (55), served as auditor and inside director of the company from 2012 to 2016.
Meanwhile, the prosecution has been continuing its investigation since raiding Sillajen in August last year.
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