On the 27th, prosecutors searched Shin Poong Pharm and Samsung Securities. This is to investigate allegations that former CEO Jang Won-jun, who is the second-generation founder of Shin Poong Pharm, used undisclosed important information to avoid investment losses. The Financial Services Commission's Securities and Futures Commission previously reported this allegation to the prosecution.
On that day, the Financial Investigation Division 1 of the Southern Seoul District Prosecutors' Office (Director General Kim Soo-hong) conducted a search at the headquarters of Shin Poong Pharm in Gangnam-gu, Seoul, and Samsung Securities in Seocho-gu, Seoul.
According to the Securities and Futures Commission under the Financial Services Commission, former Shin Poong Pharm CEO Jang Won-jun is accused of knowing in advance about the clinical failure of a COVID-19 treatment candidate that the company developed and avoiding losses of about 36.9 billion won by disposing of Shin Poong Pharm shares through the block deal method via his company, Songam-sa, in April 2021. At that time, the block deal was managed by Samsung Securities.
The prosecution received a complaint from the Securities and Futures Commission last month. It indicates that former CEO Jang Won-jun, who is the second-generation founder of Shin Poong Pharm, and Songam-sa, the holding company of Shin Poong Pharm, are suspected of violating the Capital Markets and Financial Investment Business Act (prohibition on the use of undisclosed important information). The search that day was to secure relevant materials.