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Koo Yeon-kyung, CEO of the LG Welfare Foundation, attended the "Growth Hormone Donation Ceremony for Short Stature Children" held in September last year at the LG Science Park in Magok, Seoul, where she presented a donation certificate to a child. (Photo = LG Electronics) |
[Alpha Biz= Reporter Kim Jisun] Prosecutors have launched an investigation into Koo Yeon-kyung, the eldest daughter of the late Koo Bon-moo, former chairman of LG, on suspicion of buying stocks using undisclosed information.
On October 30, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office began a search of Koo's residence and the LG Welfare Foundation office on charges of violating the Capital Markets Act (using undisclosed material information).
Koo and her husband, Yoon Kwan, CEO of BlueRun Ventures, are accused of receiving non-public important information related to a capital increase by a KOSDAQ-listed company and trading shares based on that information.
The civic group People's Economic Research Institute filed a complaint against Koo and her husband with the Seoul Southern District Prosecutors' Office on October 25.
Koo reportedly purchased about 30,000 shares of Company A, a biotech firm that her husband's company had invested hundreds of billions of won in. The stock price of Company A surged following the announcement of the investment, raising suspicions that Koo may have used undisclosed information to acquire the shares.
In light of the insider trading allegations, Koo expressed her intention to donate the shares to the LG Welfare Foundation, but the foundation's board decided to withhold the donation, resulting in its cancellation.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
