Genencell Claims "No Issues with New Drug Approval," But Indictment and Ruling Tell a Different Story

[Anchor]

Now, let's examine the claims made by Genencell CEO Kang one by one. Kang has claimed that he never lobbied candidate Kim Seung-won and that there were no issues with the approval process for the COVID-19 treatment clinical trials. However, the prosecutors' indictment, the court's ruling, and transcripts from the time contain completely contradictory details.

Reporting by Kim Deok-hyeon.

[Reporter]

In December 2024, the first-instance court found Genencell CEO Kang guilty of some charges, sentencing him to three years in prison suspended for five years.

The court determined that Kang obstructed official procedures leading up to the approval of the new drug's clinical trial plan through fraudulent means, namely by using fabricated data.

When securing the relevant patent decision, he forged documents to make it appear as though hamster experiments had been conducted even though they never took place. During the approval process, he submitted false reports that omitted suspected adverse effects, such as the deaths of hamsters administered the treatment substance.

While Kang maintains there were no problems during the clinical trial experiments and the application process for approval, the first-instance court's judgment was different.

Furthermore, the remark conveyed by then-Minister of Justice candidate Kim Seung-won to the Minister of Food and Drug Safety—stating that he was "concerned about the outflow of national wealth"—does not align with the first-instance court's view that Genencell's treatment development patents and clinical trials were based on false data.

Kang claims he has never met candidate Kim and that it was a normal petition process.

[Kang / CEO of Genencell: I have nothing to do with lawmaker Kim Seung-won. Lobbying or favors? I hate that kind of thing itself and have never done it. I have never met him, nor have I ever spoken to him directly on the phone.]

However, the prosecutors' indictment states that Kang repeatedly proposed to a businessman surnamed Yang, suggesting that if Yang helped secure the approval of the clinical trial plan through political connections, Kang would provide financial assistance.

[Businessperson Yang - Acquaintance Phone Call (November 26, 2021): Professor (CEO Kang) even sent KakaoTalk messages saying, 'Please hurry up the Ministry of Food and Drug Safety matter' and 'Please push it again,' which are recorded on KakaoTalk....]

Prosecutors also uncovered circumstances showing that following the Ministry of Food and Drug Safety's approval, Kang attempted to wire 5 million won to candidate Kim's campaign donation account.

In addition, regarding the incident where Kang sent 100 million won to Yang and told him to "buy shares because the stock price will rise" just a day after signing a contract for Kosdaq-listed company Sejong Medical to acquire 6.3 billion won worth of Genencell shares owned by Kang, the first-instance court found him guilty of utilizing non-public information.

(Camera Shot: Lee Chan-su | Video Editing: So Ji-hye | Design: Seo Seung-hyun)
※ Please note: This article was translated by AI and may contain errors.