Seoul High Court jails Genencell's Kang for four years over 600 million won lobbying payment

Two sums sit at either end of this case. Genencell's own money bought 600 million won of convertible bonds issued by a company on broker Yang's side ^[4]. Kim Seung-won, the lawmaker Yang approached, agreed to take 5 million won in political donations in return for asking the drug safety minister to speed up the trial, according to prosecutors in 2024 ^[11]. The broker's side got 120 times what the lawmaker was promised ^[1].

The two courts split over the bond. The trial court treated it as a plausible investment, noting that Kang and Yang had discussed investing and joint ventures before the request to the ministry ^[5]. The Seoul High Court read the purchase as a disguised payment. "In return, 600 million won was paid to Yang, and the form of a convertible bond acquisition was used to make it appear the money had been obtained legitimately," the court said ^[7]. It counted the full amount as compensation for brokering and solicitation ^[8], and reversed Kang's acquittal on the criminal-proceeds charge ^[3].

On the court's findings, Genencell's shareholders paid twice. Company funds covered the bond purchase, the basis of the breach-of-trust count ^[4]. The court also found that Kang talked up the drug's prospects during the COVID-19 emergency to lift the share price, and that investors lost money as a result ^[9]. The reports do not say whether Kang still holds a role at Genencell or how its board has responded. The 40 million won fine ^[1] is one fifteenth of the payment the court tied to the lobbying ^[2].

Prosecutors gave two reasons in 2024 for suspending Kim's indictment: the donation was never delivered, and the trial court in Kang's case had found it hard to conclude there was an improper solicitation ^[12]. A higher court has now found the opposite on the second point. "It is clear that the defendant solicited the Ministry of Food and Drug Safety for clinical trial approval through Kim Seung-won," the court said ^[6]. The first reason still stands. Kim told his confirmation hearing for justice minister on the 15th that he had passed along a constituent request and had not improperly intervened in the trial review ^[13]. He later withdrew from the nomination ^[13].

From here, prosecutors can revisit the suspended indictment with one of its two stated grounds gone. They can leave it suspended on the undelivered 5 million won. Or the matter goes to a special counsel, the route independent lawmaker Han Dong-hoon is pushing. "With Kang's detention today, the door has opened for a special counsel probe into the older brother's poison lobbying," Han said ^[17]. People Power Party spokesperson Cho Yong-sul said, "This can no longer be dismissed as a mere allegation." ^[16]

In my view the ruling does more to settle what happened than to raise Kim's own legal exposure. Every won the court tied to the lobbying went to Yang's side ^[8]. The only money attributed to Kim is a 5 million won pledge that prosecutors say was never delivered ^[12]. The counter-case is that a court has now put a price on a solicitation routed through Kim. That makes his constituent-request account harder to defend, and Kang and Yang still face a separate trial on charges including soliciting the trial approval ^[15]. If prosecutors reopen Kim's case on the solicitation alone, without the donation, this view is wrong.