[2022 National Audit] "Baek Kyung-ran's Bio Stock Company Participates in Government New Drug Development Project"

Dispute Continues Over Disease Control Agency Chief's Stock Holdings on Second Day

Baek Kyung-ran, Commissioner of the Korea Disease Control and Prevention Agency, is attending the National Assembly's audit of the Ministry of Health and Welfare held on the 5th, responding to lawmakers' questions. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kim Young-won] It has been revealed that a bio company in which Baek Kyung-ran, the Commissioner of the Korea Disease Control and Prevention Agency, held stocks even after taking office is participating in a government project worth 40 billion won for new drug development.

At the National Assembly Health and Welfare Committee's audit on the 6th, Shin Hyun-young, a member of the Democratic Party of Korea, stated, "Commissioner Baek Kyung-ran has held 3,332 shares of Syntekabio, a participant in the 44.6 billion won AI new drug development platform construction project, since 2016 when the company was unlisted."

Rep. Shin added, "She held the shares while advising on COVID-19 and continued to hold them even after becoming commissioner, only selling them on September 1," and questioned Minister of Health and Welfare Cho Kyu-hong, "Do you think this situation aligns with the fairness and common sense advocated by the Yoon Seok-yeol administration?"

Minister Cho responded, "I think we need to review the circumstances under which the stocks were acquired and sold together."

Rep. Shin also pointed out that Commissioner Baek did not undergo a job-relatedness review by the Ministry of Personnel Management when selling the bio stocks on September 1. She said, "Just the fact that the commissioner held the stocks caused the stock price to rise by 17%. The CEO of Syntekabio is also a former official of the Korea Disease Control and Prevention Agency," adding, "In the end, didn't the Ministry of Personnel Management fail to conduct a job-relatedness assessment?"

In response, Commissioner Baek explained, "I was informed that the sold stocks were excluded from the review," and regarding the request for submission of documents, she said, "I will visit the members and the chairman to explain in detail."

The controversy over Commissioner Baek's stock transactions continued for the second day following the previous day's audit. On the 5th, when Democratic Party member Kang Hoon-sik requested stock transaction records from the period when Commissioner Baek served as a private advisor on COVID-19, Baek said, "These are not records from when I was a public official," and "I have never used internal information for personal gain." Eventually, Welfare Committee Chairwoman Jung Chun-sook requested, "Submission of documents is fundamental to the audit," to which Commissioner Baek replied, "I will discuss (the submission of documents)."

Earlier in August, Commissioner Baek's disclosure of assets as a high-ranking public official revealed that she held bio stocks including 30 shares of SK Bioscience, 25 shares of SK Biopharm, and 3,332 shares of Syntekabio, sparking a conflict of interest controversy. Following criticism from the National Assembly and others, Baek announced on the 1st of last month that she had sold the bio stocks she held. However, suspicions arose that the sale was intended to evade the job-relatedness review being conducted by the Ministry of Personnel Management at the time.