Prosecutors Arrest and Indict CEO of Unauthorized Cell Therapy Manufacturer and Seller

The prosecution has arrested and indicted the CEO of a company that sold and administered unauthorized cell therapy products to patients with severe cancer and others, as well as a former head of the Free Economic Zone Authority who received free alcohol and provided various benefits.

Yonhap News

On the 8th, the Food and Drug Crime Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Park Hyang-cheol) announced that they have arrested and indicted Mr. A (51), the CEO of the cell therapy product manufacturing company, and Mr. B (60), the former head of the Free Economic Zone Authority, on charges of violating the Act on the Control of Health Crimes (manufacturing counterfeit medicines and illegal medical practice) and the Advanced Regenerative Bio Act. Three other related persons, including Mr. C (53), a co-operator of the company, were indicted without detention.

From November 2021 to last March, although not medical professionals, they manufactured cell therapy products worth approximately 11.1 billion KRW without approval from the Ministry of Food and Drug Safety for profit. They deceived customers by making it seem as if the cell therapy products had anticancer effects and sold and administered them a total of 657 times to patients with severe cancer and others. From August to September 2022, Mr. A provided Mr. B, who was promoting bio-related businesses, with cell therapy treatments worth about 49.5 million KRW free of charge on three occasions.

They sold the cell therapy products nationwide through distributors using a multi-level marketing method and received payment for treatments using self-issued coins. Subsequently, by providing bribes, they were selected as a participating company in the global special zone project promoted by the Free Economic Zone Authority while Mr. B was the head.

A prosecution official stated, "We will thoroughly investigate and strictly punish illegal acts such as manufacturing and selling counterfeit medicines that threaten the health of the public," adding, "We will do our utmost to completely confiscate profits obtained through crime and prevent similar criminal attempts at the source."