(EDITORIAL from Korea JoongAng Daily on Sept. 9)

South Korean authorities are under pressure to investigate potential links between political lobbying, stock manipulation, and the approval of a Covid-19 treatment clinical trial, according to a recent editorial in the Korea JoongAng Daily. Allegations suggest that Justice Minister nominee Kim Seung-won may have sought favors for the approval of Genencell's clinical trial, which has now expanded into broader suspicions of lobbying and stock manipulation involving individuals in the ruling party.

Recordings indicate that broker Yang sought to contact ruling-party figures to secure approval for Genencell's clinical trial. Kim himself stated that approval would result in hundreds of billions of won for him. In October 2021, Sejong Medical, a Kosdaq-listed company, invested 11.3 billion won in Genencell and became its largest shareholder shortly before the company received clinical trial approval from the Ministry of Food and Drug Safety.

Suspicious share price movements occurred immediately following approval, with heavy selling by financial investors causing the stock price to halve before surging again. Allegations also emerged that individuals involved in stock manipulation joined Genencell and ultimately abandoned it, leaving it in a weakened state. Sejong Medical was subsequently delisted in June, leaving many retail shareholders with significant losses.

Kim's claim that he was merely conveying a public-interest petition appears questionable given the company's financial troubles. On Monday, some Sejong Medical shareholders petitioned a court to heavily penalize Genencell's founder, Kang, who is currently on trial. President Lee Jae Myung of Sejong Medical has vowed to financially ruin stock manipulators.

Authorities must thoroughly examine whether the clinical trial was approved properly, who benefited financially from it, and whether market manipulation occurred during the process. These questions tie directly into whether political influence, regulatory decisions, and share price movements were interconnected. Kim, who received a suspended indictment in late 2024, was recently reported to police once again, with the case now under the jurisdiction of Yeongdeungpo Police Station.

Given the seriousness of the allegations, the investigation should not be limited to a local police station. Senior police leadership should direct the investigation and collaborate with financial regulators to swiftly investigate all related allegations. If the police fail to act promptly, as they did in a previous corruption investigation involving former Democratic Party floor leader Kim Byung-kee, where an arrest warrant was only sought after a year-long review, public trust will be further eroded.