 |
Lee Woong-yeul, Honorary Chairman of Kolon Group. (Photo courtesy of Kolon Group) |
[Alpha Biz= Paul Lee] Acquittal finalized after nearly seven years of litigation over alleged ingredient manipulation
Lee Woong-yeul, honorary chairman of Kolon Group, has been formally cleared of charges related to alleged ingredient manipulation of the osteoarthritis treatment Invossa-K, after prosecutors decided not to appeal his acquittal.
Kolon Group stated that it would “shake off the burden of nearly seven years of litigation and turn this into an opportunity for growth and a new leap forward.”
According to legal sources on Feb. 11, the Seoul High Prosecutors’ Office decided not to file an appeal to the Supreme Court against Lee and other defendants, taking into account evidentiary matters and the likelihood of the appeal being accepted.
Prosecutors had alleged that between November 2017 and March 2019, the defendants manufactured and sold Invossa’s second component using kidney-derived cells rather than the cartilage cells approved by South Korea’s Ministry of Food and Drug Safety (MFDS), and that they defrauded patients of approximately KRW 16 billion.
In 2024, the court of first instance acquitted Lee and other defendants of all charges.
On Feb. 5, the appellate court also dismissed the prosecution’s appeal and upheld the not-guilty verdict.
The appellate court acknowledged that “in the highly uncertain process of new drug development, the company’s opaque decision-making and business practices contributed to exacerbating the issue,” but concluded that “there is insufficient evidence to establish the defendants’ criminal liability.”
In a statement released the same day, Kolon Group said it “respects the decisions of both the first and second trial courts, which found the defendants not guilty, as well as the prosecution’s decision to forgo an appeal.”
The group added, “We will now move beyond the burden of nearly seven years of legal proceedings and use this as a stepping stone for the company’s growth and renewed advancement.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
