The Seoul Southern District Prosecutors' Office has indicted a former chief executive of Wellbiotech, formerly a KOSPI-listed company, on charges of trading shares using undisclosed material information related to the company's entry into the COVID-19 vaccine business.
The Seoul Southern District Prosecutors' Office's Joint Investigation Unit for Financial and Securities Crimes (led by Chief Prosecutor Shin Dong-hwan) said on the 31st that it had indicted former Wellbiotech CEO A without detention on charges of violating the Financial Investment Services and Capital Markets Act.
According to prosecutors, A is accused of trading company shares around April 2021 using undisclosed material information related to Wellbiotech's entry into the COVID-19 vaccine distribution and production business, when the company was still listed.
Prosecutors believe A acquired a total of 186.51 million won in illegal gains in the process of trading shares using internal information that had not been disclosed to ordinary investors. Wellbiotech subsequently faced management difficulties and was delisted on January 26.
Currently, A and other former Wellbiotech executives are undergoing a first trial on charges of inflating the stock price after deceiving investors in a similar manner, including distributing false and exaggerated press releases that made it appear the company was participating in Ukraine reconstruction projects. This case is separate from that trial and stems from the Southern District Prosecutors' Office's investigation into stock price manipulation related to Wellbiotech's entry into the COVID-19 vaccine distribution and production business.
