KB News Desk
Prosecutors on Wednesday again sought prison sentences for Koo Yeon-kyung, the eldest daughter of late LG Group Chair Koo Bon-moo, and her venture capitalist husband Yoon Kwan, in an appeal, accusing the couple of trading on undisclosed information.
The couple was acquitted of all charges in the first trial.
At a final hearing in the Seoul High Court, prosecutors requested the appellate court to impose the same sentences they had demanded in the lower court.
Prosecutors had requested a two-year prison term and a fine of 50 million won ($37,400) for Yoon, a general partner at BlueRun Ventures, for violating the Capital Markets Act. For Koo Yeon-kyung, who heads the LG Welfare Foundation, they sought one year in prison, a 20 million won fine and forfeiture of about 105.7 million won and alleged illicit profits.
Prosecutors allege Koo purchased shares in Mezzion after Yoon tipped him off about BRV’s confidential plan to inject 50 billion won into the biotech company. The indictment states Koo acquired roughly 35,990 Kosdaq-listed Mezzion shares valued at approximately 650 million won as of April 12, 2023, a week before the investment was announced.
The April 19 disclosure sent Mezzion’s shares up 16.6 percent on the day. Prosecutors allege that Koo secured about 100 million won in unrealized gains and believe Yoon had provided her with the information in advance between late March and April 12.
Prosecutors also argued that the lower court wrongly dismissed the couple’s close financial ties, saying the two appeared to jointly manage and discuss their assets and could therefore have shared the undisclosed investment information.
Both Yoon and Koo have denied the allegations.
“I had absolutely no reason to commit such an unreasonable act by using undisclosed information about a financially unstable and risky company and putting her at risk,” Yoon said in his final statement.
Koo also denied wrongdoing.
“My father taught me that information learned through family should never be used for personal purposes outside the family and I have never forgotten that,” said Koo. “I believe I have lived my life without doing anything I should be ashamed of.”
The appellate court is scheduled to deliver its ruling on Nov. 11 at 2 p.m.
