Yang Namhee, Chairman of Wellbiotech, to Face Pretrial Detention Hearing on the 15th
Special Prosecutor Min Junggi Requests Arrest Warrant on the 14th
Stock Price Surge Yields 40 Billion Won in Capital Gains
Scheme Mirrors Sambu Constructio
The decision on whether to detain Yang Namhee, Chairman of Wellbiotech, who is suspected of orchestrating a stock price manipulation scheme similar to the "Sambu Construction stock price manipulation" case, could be made as early as November 15.
According to the legal community, the Seoul Central District Court will hold a pretrial detention hearing for Chairman Yang at 3 p.m. today, presided over by Judge Park Jungho, who is in charge of warrants.
The special prosecutor's team led by Min Junggi, which is investigating various allegations surrounding First Lady Kim Keonhee, requested an arrest warrant for Chairman Yang the previous day on charges of violating the Capital Markets Act, aggravated breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, and embezzlement in the course of work.
Chairman Yang is accused of manipulating the stock price by deceiving investors into believing that Wellbiotech would participate in Ukraine reconstruction projects in May 2023. This method is similar to that used in the Sambu Construction stock price manipulation case. Wellbiotech was grouped as a "Ukraine reconstruction stock," and its share price soared more than threefold, from 1,383 won at the end of April 2023 to 4,610 won at the end of July of the same year. Around this time, investors reportedly made about 40 billion won in capital gains through the issuance and sale of convertible bonds (CB).
On November 13, the special prosecutor's team arrested Chairman Yang, citing his failure to comply with a summons and a high risk of flight. They took into account the case of Lee Kihun, former Vice Chairman of Sambu Construction and former Chairman of Wellbiotech, who fled ahead of his pretrial detention hearing in July and was apprehended after 55 days.
Meanwhile, the special prosecutor's team also indicted Koo Sehyun, former CEO of Wellbiotech, on the previous day on charges of participating in the stock price manipulation scheme. Former CEO Koo faces charges of aggravated breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes and violating the Capital Markets Act. Since launching the investigation on July 2, the special prosecutor's team has been probing allegations of stock price manipulation involving both Sambu Construction and Wellbiotech. After recently questioning key figures such as Chairman Yang and former CEO Koo, the team is expected to focus its investigation on uncovering the connection between the stock price manipulation schemes of the two companies and First Lady Kim.
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