The CEO of Cellivery, known as the 'first company to be listed under the Growth Potential Special Listing,' has been handed over to the prosecution while in custody.
On the 31st, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced that they had sent Cellivery CEO Cho Dae-woong to the Seoul Southern District Prosecutors' Office in custody on charges of violating the Capital Markets Act and embezzlement and breach of trust in the course of business.
CEO Cho is accused of raising approximately 70 billion KRW by issuing convertible bonds under the name of research and development expenses in 2021, then using the funds for purposes other than intended, such as acquiring other businesses.
He is also suspected of using undisclosed important information by selling tens of millions of won worth of nominee stocks in advance, knowing that a refusal of audit opinion would be issued in the accounting process.
Cellivery attracted attention as the first company to enter the KOSDAQ market in 2018 under South Korea's Growth Potential Special Listing system. However, it faced a crisis after receiving a 'refusal of opinion' in the 2023 financial statement audit, leading to a delisting decision last year.
Cellivery has filed for a suspension injunction with the Seoul Southern District Court, and the delisting procedure is currently on hold.
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