Kim Keonhee Special Prosecutor Requests Arrest Warrant for Former CEO Seohyun Koo over Wellbiotech Stock Manipulation Allegations

Charges Include Breach of Trust and Evidence Concealment
Same Method as Used in the Sambu Construction Case

The special prosecutor's team led by Min Junggi, which is investigating allegations related to First Lady Kim Keonhee, has moved to secure the custody of Seohyun Koo, former CEO of Wellbiotech, who is implicated in the Wellbiotech stock price manipulation case.

On the 27th, the special prosecutor's team announced that it had requested an arrest warrant for former CEO Koo on charges of fraudulent unfair trading under the Capital Markets Act, breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, evidence concealment, and aiding a fugitive.

Former CEO Koo is accused of deceiving investors in May of last year by making it appear as if Wellbiotech would participate in reconstruction projects in Ukraine, thereby engaging in market manipulation. This was found to be the same method used in the Sambu Construction stock price manipulation case that surfaced during the same period.

Seohyun Koo, former CEO of Wellbiotech, Yonhap News.

At that time, Wellbiotech was grouped as a "Ukraine reconstruction stock," causing its share price to surge. During this process, it was revealed that approximately 40 billion won (about 30 million US dollars) in capital gains were generated through the issuance and sale of convertible bonds (CB).

Former CEO Koo is also accused of assisting Kihoon Lee, former Vice Chairman of Sambu Construction and Chairman of Wellbiotech, in his escape after Lee was indicted for earning 36.9 billion won in illicit gains through the Sambu Construction stock price manipulation. After an arrest warrant was requested for Lee in July, he failed to appear at the warrant review and went on the run, but was apprehended and indicted in Mokpo, South Jeolla Province, 55 days later.

The special prosecutor's team reportedly summoned former CEO Koo for the first time in July, when the investigation into the Sambu Construction and Wellbiotech stock price manipulation allegations began, and has questioned him multiple times since then.