Both the defendant and prosecutors appealed the first trial ruling in the Cellivery case, the "No. 1 corporations listed under the growth special-listing" that caused losses to investors after filing false disclosures and ending in delisting.
According to legal sources, on the 27th the Seoul Southern District Prosecutors' Office filed a notice of appeal on the 26th with the 14th Criminal Division of the Seoul Southern District Court (Presiding Judge Lee Jeong-hee), which heard the case.
Former Cellivery CEO Cho Dae-ung, the defendant, filed a notice of appeal with the Seoul Southern District Prosecutors' Office on the 24th.
Earlier, on the 20th, the 14th Criminal Division of the Seoul Southern District Court (Presiding Judge Lee Jeong-hee) sentenced CEO Cho, who was indicted on charges including fraudulent unfair transaction under the Financial Investment Services and Capital Markets Act, to 15 years in prison and a fine of 210 billion won. The court also ordered confiscation of 510 million won. A person surnamed Kwon, an inside director who was indicted alongside Cho, was sentenced to five years in prison and a fine of 110 billion won.
Cho and others are accused of raising about 70 billion won in 2021 through issuing convertible bonds and other means, disclosing that the funds would be used for new drug research and development, but in fact acquiring a wet tissue manufacturer and lending that company more than 20 billion won unsecured. In 2023, it was found that, after learning in advance about Cellivery's designation as an issue under management and trading suspension, they sold their holdings and avoided losses of more than 500 million won.
The court said, "The defendant planned and led the crimes from a position as Cellivery's top decision-maker, and the responsibility is very heavy considering the methods and duration of the crimes and the amount taken as unjust gains," but added, "When Cellivery faced a liquidity crunch due to the crimes, the defendant appears to have injected substantial personal funds into the company through personal contributions, and the fact that this is a first offense with no prior criminal record before this case was considered as favorable circumstances," explaining the sentencing reasons.
Prosecutors had initially sought 30 years in prison and a fine of 250 billion won for Cho, saying "the matter is serious, with unjust gains reaching 67.6 billion won and no recovery of damages," and seven years in prison and a fine of 250 billion won for Kwon.
Cellivery entered KOSDAQ in Nov. 2018 as the first domestic listing under the growth special-listing system. The growth special-listing is a system that eases some listing requirements to support the listing of corporations with high growth potential even if they currently lack sufficient results.
Cellivery drew attention for developing new drugs such as treatments for Parkinson's disease and COVID-19, but after a disclaimed audit opinion and complete capital impairment, it was delisted last year.