Yang Nam-hee, known as the de facto owner of Well Biotec, has been arrested. Yang and the group are suspected of using the Ukraine reconstruction theme to manipulate the stock prices of Well Biotec and SAMBU Construction and taking illicit profits in the tens of billions of won. The special counsel investigating Kim Keon-hee is proceeding with an investigation on the view that first lady Kim Keon-hee may have been connected to the case at the time.
According to the capital market industry on the 13th, at about 7:40 a.m. that day, the special counsel investigating Kim Keon-hee arrested Yang at a residence.
Yang is known as a figure who effectively controlled the company through convertible bonds (CB) issued by Well Biotec. From 2022 to 2023, Well Biotec issued CBs totaling 20.5 billion won, and after the stock price surged, the creditors who invested in the CBs converted them into shares and pocketed huge gains. The scale of the unjust gains at the time is estimated at around 40 billion won.
The side of Lee Jong-ho, former head of Black Pearl Invest and a closest aide to Kim, is known to have invested in SAMBU Construction and Well Biotec at the time and made profits in the tens of millions of won. The special counsel is investigating on the view that Kim may have had a link to the stock manipulation case at the time. The probe is also focusing on tracing the flow of funds around the individuals who reaped capital gains through Well Biotec stock manipulation.
In the past, Yang received a 20-year sentence request from prosecutors on charges of embezzling company funds after a zero-capital merger and acquisition (M&A) of KOSDAQ-listed Hwajin, but was acquitted at trial. Yang is also suspected of stock manipulation using Ascendio, a subsidiary of Well Biotec.
In August, the special counsel raided Yang's residence, and in September also searched the office of a private lender who was known to have loaned money to Yang's group.