The police have initiated a forced investigation into Il-Yang Pharmaceutical, which is under suspicion of stock price manipulation.
According to the police on Jan. 5, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency executed a search and seizure warrant at the headquarters and offices of Il-Yang Pharmaceutical in the Gangnam district of Seoul. This action was taken due to allegations of market manipulation under the Capital Markets Act.
Il-Yang Pharmaceutical is accused of inflating its stock price by releasing false information in March 2020. The company claimed that its leukemia treatment Supect reduced the COVID-19 virus by 70% within 48 hours compared to a control group when administered to COVID-19 patients. This announcement, which is a violation of the Capital Markets Act, significantly raised the company’s stock price from the 20,000 won range to the 100,000 won range in just four months.