[Special Stock] Shinpung Pharmaceutical Plummets Amid Police Raid Over 'Slush Fund Creation' Allegations

[Asia Economy Reporter Ji Yeon-jin] Shinpoong Pharmaceutical is plummeting following news of a police raid on the 24th.

As of 2:24 PM on the same day, Shinpoong Pharmaceutical was trading at 37,800 KRW, down 16.37% (7,400 KRW) compared to the previous day. The company initially showed an upward trend in early trading but fell as much as 23.97% during the session.

The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit conducted a raid on the finance team at Shinpoong Pharmaceutical's headquarters in Gangnam-gu, Seoul, and its factory in Ansan, Gyeonggi Province, on the morning of the same day.

The police reportedly suspect that Shinpoong Pharmaceutical engaged in false transactions with pharmaceutical raw material companies for about 10 years starting in the mid-2000s, inflating raw material prices and creating slush funds amounting to approximately 25 billion KRW. Shinpoong Pharmaceutical is one of the pharmaceutical companies developing oral treatments for the novel coronavirus infection (COVID-19).