 |
Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] A South Korean court is set to deliver its first-instance verdict on Monday in an insider trading case involving Koo Yeon-kyung, the eldest daughter of late LG Group chairman Koo Bon-moo, and her husband Yoon Kwan, CEO of BlueRun Ventures.
The Seoul Southern District Court’s Criminal Division 13 is scheduled to announce its ruling at 2 p.m. local time. The couple has been charged with violating the Capital Markets Act by allegedly using undisclosed material information related to a capital increase at a KOSDAQ-listed biotechnology company, referred to as Company A.
Prosecutors allege that Koo purchased 30,000 shares of Company A in April 2023 after obtaining non-public information about an upcoming investment. The biotech firm, which develops treatments for rare heart diseases, later announced that it had raised KRW 50 billion through a third-party share issuance led by BRV Capital Management, where Yoon serves as chief investment officer.
At the final hearing held in December last year, prosecutors sought a two-year prison sentence and a KRW 50 million fine for Yoon, and a one-year prison term, a KRW 20 million fine, and forfeiture of approximately KRW 105.7 million for Koo.
Both defendants have denied the allegations, insisting they neither shared inside information nor used such information to trade the stock.
The verdict is being closely watched given the defendants’ prominence and the heightened scrutiny on insider trading enforcement in South Korea’s capital markets.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
