In a high-profile case that has captured public attention, Koo Yeon-kyung, the representative of the LG Welfare Foundation, and her husband, Yoon Kwan, the head of BlueRun Ventures, faced their first trial on April 15, 2025. They are accused of violating the Capital Market and Financial Investment Business Act by allegedly profiting from stock trades based on undisclosed information.
The Seoul Southern District Court's Criminal Agreement Division 13 heard the case, which involves serious allegations of insider trading. The prosecution claims that Koo, who is the daughter of the late Koo Bon-moo, former chairman of LG Group, received confidential information from Yoon regarding a significant investment in a bio company listed on KOSDAQ.
According to the prosecution, the bio company announced it had secured an investment of 50 billion won through a paid-in capital increase from BlueRun Ventures Capital Management on April 19, 2023. At the time, Yoon was serving as the Chief Investment Officer (CIO) of BlueRun Ventures. The prosecution alleges that Koo used insider information to purchase 35,990 shares of the bio company on April 12, 2023, which amounted to 649.92 million won, resulting in an unfair profit of approximately 15.66 million won.
During the trial, the prosecution presented evidence including recorded phone calls between Koo and an employee of a securities company, suggesting that Koo had received critical information prior to her stock purchase. However, both Koo and Yoon have vehemently denied these allegations.
Koo's defense attorney argued, "Koo did not receive any information regarding the paid-in capital increase from Yoon or receive any investment proposals that led to her stock purchase." Similarly, Yoon's lawyer asserted, "There is no evidence that Yoon conveyed any undisclosed material information to Koo or that he prompted her to conduct stock trades. The information in question was only finalized during an investment committee meeting on April 17, 2023, after Koo had already purchased the shares." This defense hinges on the argument that since the investment was confirmed after Koo's stock purchase, her actions could not be classified as using undisclosed material information.
The court proceedings highlighted the complexity of the case, with Koo's lawyer stating that the specifics of the stock purchase would be clarified in written submissions. The defense also emphasized that any information concerning the investment was generated after Koo's purchase, negating the prosecution's claims.
As the trial progressed, the presiding judge summarized the defense's position, stating, "Yoon claims he did not provide any undisclosed material information to Koo, and the timing of the information's generation also supports their argument that there was no illegal activity." The court has scheduled the next hearing for May 29, 2025, where witness questioning will take place, beginning with a key individual identified by Yoon's defense as crucial to understanding the investment's context.
In addition to the insider trading allegations, Yoon Kwan is currently involved in a separate legal battle with tax authorities, contesting a claim for 12.3 billion won in comprehensive income tax refunds. As a U.S. citizen, he argues that he should be classified as a "domestic resident" under South Korean tax law, which would subject him to the same tax obligations as Korean citizens. This dual legal situation has placed significant pressure on the couple, drawing intense media scrutiny.
During the trial, Yoon Kwan responded to the court's inquiry about his residency by stating, "I reside in the United States." This admission adds another layer to the couple's ongoing legal challenges, as they navigate the complexities of both insider trading allegations and tax disputes.
The couple's case has attracted considerable media attention, with dozens of journalists present at the courthouse. Their legal teams have indicated a desire for a swift resolution, and the defense has requested to minimize unnecessary court appearances and streamline the evidence presented.
As the trial unfolds, many are watching closely to see how the court will interpret the nuances of insider trading laws in relation to the timing of information disclosure and stock trading activities. The outcome could have significant implications not only for Koo and Yoon but also for broader discussions surrounding corporate governance and regulatory compliance in South Korea.
In a country where corporate scandals have previously rocked the foundations of major conglomerates, the stakes are high for Koo Yeon-kyung and Yoon Kwan. Their case underscores the importance of transparency and accountability in financial markets, especially when it involves high-profile figures connected to powerful business empires.
As the next court date approaches, both the prosecution and defense are preparing for a rigorous examination of the evidence and testimonies that could sway the court's decision. With public interest piqued, this case serves as a reminder of the critical balance between corporate interests and the ethical responsibilities that come with significant financial power.
