This article was published on Nov. 17, 2025, at 4:17 p.m. on the ChosunBiz MoneyMove site.
Market attention is focused on how far the fallout will spread after a key figure in the stock manipulation case that the Kim Keon-hee special prosecutor is examining was confirmed to be an inside director of KOSDAQ-listed CanvasN.
CanvasN has drawn skeptical attention from the industry because, since last November, people connected to previously delisted corporations have repeatedly appeared during the change in management. CanvasN is once again pursuing a sale, and some analysts expect the sale will face difficulties because of the special prosecutor's investigation.
According to sources in the capital markets industry, the person who was subject to a search and seizure in September on suspicion of lending funds to the stock manipulation group targeting Well Biotec was Kim Young-jin, chairman of CanvasN. (Related article☞ [Exclusive] "Funding source for Well Biotec acquisition"… Kim Keon-hee special prosecutor conducts search and seizure of loan sharks https://biz.chosun.com/stock/stock_general/2025/09/17/XNTMK2MSLRBPDGL73OSHP3XKZU/)
Chairman Kim is said to have been a loan shark who lent initial acquisition funds to the group that attempted stock manipulation using Well Biotec. Lee Ki-hoon, Yang Nam-hee and others acquired the company through convertible bonds (CBs) issued by Well Biotec, and the special prosecutor believes Chairman Kim lent the funds used to purchase the CBs. That group reportedly bought CBs totaling 20.5 billion won from 2022 to 2023, then promoted participation in a Ukraine reconstruction project to boost the stock and reap illicit gains. The total illicit profits they obtained amounted to 40 billion won.
Sambu Construction and Well Biotec are currently suspended from trading and face the prospect of delisting. This is not the first time Chairman Kim's name has surfaced in the market in connection with a delisting.
Chairman Kim was listed as an inside director when CanvasN (then Victory Contents) was acquired by DB Investment Association last November. Market participants at the time paid attention to his past record. A company where he previously worked had also been delisted. From 2016 to 2019, Chairman Kim served as CEO and an inside director of SL Energy (then Semiconlight), and due to poor performance and repeated failure to make timely disclosures, points accumulated and trading was suspended in 2022. SL Energy was finally delisted in December last year.
A source in the capital markets industry said, "Among the financial investors (FI) who participated in the sale of CanvasN's management last year, there were several people connected to delisted corporations," adding, "It is unsurprising that the market would have questions about the party that acquired CanvasN."
CanvasN is currently pursuing the sale of its management rights. After DB Investment Association acquired CanvasN from F&F last November, it has recently attempted to sell the management rights again. Nano Chem Tech, the largest shareholder of DB Investment Association, announced in July that it planned to sell DB Investment Association outright.
The problem is the price. DB Investment Association currently holds about 3.7 million shares of CanvasN. Nano Chem Tech plans to sell DB Investment Association for a total of 15.5 billion won. Converted to a per-share price for CanvasN, that is about 4,133 won. But CanvasN's current share price remains in the 1,600-won range. That means they are trying to sell for more than double the market price.
Naturally, the sale process has hit snags. Early in the sale push, the buyer candidate for CanvasN was identified as Representative K of listed company G, but payment was delayed and the final balance payment was postponed to Dec. 3. The buyer candidate then changed to Wonjeong Infrastructure Holding.
An industry source said, "CanvasN's stock plunged sharply at the end of July due to a sudden drop in price and forced selling after news of the special prosecutor's investigation," adding, "Despite delays in the sale process, the price has not been adjusted at all. Even considering a control premium, given that CanvasN is a loss-making company, this is somewhat inexplicable."