Over 20 Investigators Deployed
KT&G "Clarification During Investigation Process"
[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 KT&G's Seoul headquarters.
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency deployed about 20 investigators on the morning of the 6th to conduct a search and seizure at KT&G's Seoul headquarters located in Gangnam-gu, Seoul. This search was reportedly carried out 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 May of last year, the police have been investigating whether there were any issues during the merger process by questioning current and former executives of KT&G, Youngjin Pharm, and the former KT&G Life Sciences. The police plan to summon related parties for questioning sequentially once the analysis of the seized materials is completed.
In response, KT&G stated, "The allegations are not true," and added, "We will actively clarify the facts during the investigation process."
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