A court ordered the arrest of former Well Biotec CEO Gu Se-hyeon, who is accused of deceiving investors by pretending to take part in Ukraine reconstruction projects to inflate the stock price and pocket illicit gains.
On the 29th, Seoul Central District Court Director General Judge Park Jeong-ho issued an arrest warrant sought that day by Special Counsel Kim Keon-hee for former CEO Gu.
Director General Judge Park explained the reason for detention, saying there was a risk of flight and a risk of destroying evidence regarding former CEO Gu.
Earlier, on the 27th, Special Counsel Kim Keon-hee sought an arrest warrant for former CEO Gu on charges including violating the Financial Investment Services and Capital Markets Act, violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust), and evidence concealment and aiding a suspect's escape.
Former CEO Gu is suspected of deceiving investors to boost the stock price by making it appear as though he would pursue Ukraine reconstruction projects, including taking part in a Ukraine forum held in Poland in 2023 with Sambu Construction Co. The special counsel suspects that Gu made about 40 billion won in profit by selling convertible bonds he had bought in advance at a low price after the stock price rose.
Former CEO Gu is also accused of helping the escape of Lee Gi-hun, the vice chairman of SAMBU Construction (and chairman of Well Biotec), a key figure in the SAMBU Construction stock manipulation case. Earlier, Vice Chairman Lee fled ahead of a warrant review and was arrested on the 10th of last month, 55 days later. The special counsel believes former CEO Gu helped Lee as he moved through five locations nationwide while on the run.