This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:31 p.m. on Sep. 9, 2026.
As a controversy grows in political circles over alleged lobbying for clinical trials of Genencell's COVID-19 treatment by Justice Minister nominee Kim Seung-won, it has been confirmed that the past investor list of related listed corporations included numerous listed corporations and capital market players.
As the Genencell affair expands into a stock manipulation controversy, the track records of these investors are being revisited. In the industry, some said "an unusually large number of figures appear," noting that the developments ahead warrant attention.
According to the capital market industry on the 9th, among those who invested in Sejong Medical, formerly the largest shareholder of Genencell, many had faced allegations such as stock manipulation and cashless mergers and acquisitions (M&A). The listed companies these individuals passed through became distressed or were delisted.
Genencell is a biotech venture founded in 2016 that has pursued new drug development based on natural substances. During the COVID-19 pandemic, it launched treatment development and drew major attention as it was mentioned in related themes.
Genencell drew the most attention in Oct. 2021, when it received approval for clinical trials of a COVID-19 treatment from the Ministery of Food and Drug Safety. At that time, the share price of Sejong Medical, Genencell's largest shareholder, rose from the 2,000-won range before approval to as high as the 9,000-won range after approval. In this process, it was confirmed that nominee Kim contacted the head of the Ministery of Food and Drug Safety to the effect of "please look after the clinical trial," prompting allegations of external pressure.
In Jul. 2021, just before Sejong Medical acquired Genencell in Oct. 2021, Sejong Medical's largest shareholder changed to Time Investment. Financial investors (FIs) that participated in this process included MOB Consortium, BMC Consortium, and No. 21-13 Masa New Technology Association No. 44.
On the list of those investment institutions are names such as a person surnamed Yu, a person surnamed Park, and a person surnamed Jeong, who are well known as players in the capital market industry. The investment corporations in which they co-invested sold their equity within two to three months of the Sejong Medical investment, reaping large gains.
Yu is well known in the industry for cashless M&A. Along with Lee Jun-min, who was known to have been involved in Sejong Medical stock manipulation, Yu acquired and controlled a KOSDAQ-listed company, Company E, and has a history of facing allegations of stock manipulation, embezzlement, and breach of trust.
Lee Jun-min secured control of Genencell by acquiring Sejong Medical's equity through Canaria Bio (now Hyundai Feed). Early this year, Lee was sentenced to four years in prison on charges of manipulating the stock prices of multiple listed companies, including Canaria Bio.
Jeong served as the head of KOSDAQ-listed Company B and, like Yu, faced stock manipulation allegations. It is said Jeong colluded with stock manipulation forces while acquiring other listed companies through Company B. Jeong was also sued in connection with this matter but ultimately did not stand trial after the complaint was withdrawn.
A capital market industry source said, "Jeong has no prior record of punishment for stock manipulation, but is quite well known in the industry," adding, "Jeong often works with figures who have a history of stock manipulation."
Park, who works with Jeong, also appears as an investor in Sejong Medical. Park previously received a suspended prison sentence on charges of embezzlement and breach of trust at a listed company Park controlled.
Namgung, a chairman known as a major M&A player on the KOSDAQ market who headed numerous affiliates, also had a hand in it. In a personal capacity, he carried out an FI investment in Sejong Medical.
An industry source said, "Many of the companies they have passed through became distressed or have a history of being mired in stock manipulation controversy," adding, "It is unusual for so many figures to appear in a single stock at the same time." The source also noted, "That shows how much Genencell drew attention on the KOSDAQ market at the time," and pointed out, "The mere appearance of these figures supports the possibility of stock manipulation."
Even before the Sejong Medical investment, some stocks linked as Genencell-related shares soared. When Genencell first declared development of a COVID-19 treatment, the share prices of Gold Pacific and KOREA PHARMA, corporations that conducted joint research, rose 130% and 150%, respectively, on news of approval for clinical trials in India. At the time, prosecutors were investigating Gold Pacific on charges of exaggeratedly promoting the efficacy of its pipeline.