Prosecutors Conduct Search and Seizure at Residence of Gu Yeon-gyeong, LG Welfare Foundation CEO, for 'Use of Undisclosed Insider Information'

The prosecution has launched a compulsory investigation into Koo Yeon-kyung, the head of the LG Welfare Foundation, who is suspected of acquiring stocks using undisclosed information. Koo is the eldest daughter of the late Koo Bon-moo, the former chairman of LG Group.

Seoul Southern District Prosecutors' Office, Yangcheon-gu, Seoul.
Photo by Daehyun Kim kdh@

According to the legal community on the 30th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Gong Jun-hyeok) is conducting a search and seizure this morning at Koo's residence and related corporate offices in connection with allegations of using undisclosed important information under the Capital Markets Act against Koo and her husband, Yoon Kwan, CEO of Blue Run Ventures (BRV).

Koo is suspected of having received and utilized undisclosed important information in advance when acquiring 30,000 shares of a bio company A, listed on the KOSDAQ, last year. In particular, in April of last year, company A received an investment of 50 billion KRW through a third-party allotment paid-in capital increase from BRV Capital Management, an investment platform of BRV, where Koo's husband Yoon serves as CEO.

In relation to this, the civic group People's Livelihood Economy Research Institute filed a complaint with the prosecution against the couple on the 25th. In the complaint, the group stated, "CEO Yoon anticipated the rise in the stock price of the corporation that directly decided on the investment and had Koo purchase the stocks, and Koo bought the stocks for the purpose of obtaining private gain by using undisclosed information."