Prosecutors Clear Former Shinpoong Pharmaceutical CEO of Undisclosed Information Allegations

Jang Wonjun, former CEO of Shinpoong Pharmaceutical, who was accused of selling shares in advance to avoid hundreds of billions of won in losses before the release of clinical trial results showing the failure of a COVID-19 treatment, has been cleared of all charges by prosecutors.

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

On September 18, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Lim Sejin) announced that it had decided not to indict Jang Wonjun, former CEO of Shinpoong Pharmaceutical, who had been reported by the Securities and Futures Commission of the Financial Services Commission for allegedly violating the prohibition on the use of undisclosed material information under the Capital Markets Act.

The prosecution conducted searches and seizures at eight locations, including the residences and offices of those involved and securities firms, analyzed a large volume of seized materials, and investigated researchers responsible for COVID-19 treatment development and employees of securities firms.

During the investigation, prosecutors found that Jang made the decision to conduct a block deal sale and communicated his intention to sell to the securities firm before learning the results of the clinical trial. As a result, they determined it was difficult to conclude that he had used undisclosed material information.