▲ A broker surnamed Yang, suspected of soliciting favors regarding a new drug to Justice Minister nominee Kim Seung-won, attends a court hearing on charges of offering bribes at the Seoul Western District Court in Mapo-gu, Seoul, on September 15.
It has been revealed that a key figure surnamed Yang, who is at the center of allegations regarding solicitations made to the Ministry of Food and Drug Safety (MFDS) for a new COVID-19 drug on behalf of Justice Minister nominee Kim Seung-won, was previously caught by the MFDS for false advertising while running a cosmetics business.
In 2014, Yang founded Gustar, a company distributing and selling feminine care products and cosmetics.
According to the office of Representative Han Ji-ah of the People Power Party, the MFDS caught Gustar Co., Ltd., operated by Yang, for false advertising in November 2020 and imposed an advertising business suspension in February 2021.
This action was taken because Yang falsely advertised two products—"Pielsana Fine Spring Day Nourishing Hand Cream" and "Inner Pink Pure Foam Cleanser"—as if they possessed medicinal properties.
Specifically, the MFDS determined that Yang falsely advertised on social media that the cleanser had "antibacterial properties" without supporting documentation, and promoted the hand cream as being "effective against inflammation," misleading consumers into mistaking them for pharmaceuticals.
At the time, the products were also distributed to military post exchanges (PX). Some media outlets reported that in 2022, the following year, Yang made solicitous remarks to military officials to secure the supply of the company's products to the PX.
On October 30, 2024, three years after the MFDS sanction, Yang closed Gustar Co., Ltd., and sales of the products have currently been suspended.
An MFDS official explained, "Cosmetics do not undergo deliberation procedures such as licensing or approval, but if they are sold as functional cosmetics, safety and efficacy evaluations must be conducted for each product. In Gustar's case, none of the products were reviewed as functional cosmetics, and they were cited for advertisements that could cause them to be mistaken for pharmaceuticals."
Representative Han Ji-ah of the People Power Party, a member of the National Assembly's Health and Welfare Committee, stated, "A businessperson sanctioned by the MFDS for false advertising has reappeared in the MFDS approval process for a new drug. This cannot be dismissed as a coincidence, and we will thoroughly uncover during the regular session of the National Assembly who asked what of whom and how they approached the MFDS."
Representative Han plans to summon Yang as a witness regarding the false advertising during next month's parliamentary audit in October.
Yang is suspected of pocketing 600 million won from Kang Se-chan, CEO of new drug developer Genencell, in October 2021 in return for lobbying the MFDS through nominee Kim.
As prosecutors indicted Yang on charges including violations of the Attorney-at-Law Act, Yang is currently on trial in a court of first instance.
Yang denies all allegations, claiming not only innocence regarding the MFDS lobbying suspicions, but also asserting that the 600 million won in question was "a legitimate investment received from Kang."
(Photo: Yonhap News)
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