LG's Koo Yeonkyung and Yoon Kwan Trial Centers on Dispute Over 'April 11'

The criminal trial of Koo Yeonkyung, CEO of the LG Welfare Foundation, and her husband Yoon Kwan, CEO of Blue Run Ventures (BRV), continues to focus on the events of April 11, 2023. This date is significant because, on the following day, April 12, CEO Koo purchased 35,990 shares of Mezzion, worth approximately 649.92 million won. Prosecutors suspect that CEO Koo accumulated the shares after hearing about BRV’s investment decision from CEO Yoon.

Blue Run Ventures (BRV) logo. The Law Times

On November 18, at the 13th Criminal Division of the Seoul Southern District Court (Presiding Judge Kim Sangyeon), Noh Seongil, Executive Director of Mezzion, appeared as a witness in the trial for alleged violations of the Capital Markets Act by the couple. Together with Choi Beomjin, former Deputy CEO of BRV Korea and a previous witness, Executive Director Noh handled the practical aspects of BRV’s 50 billion won investment in Mezzion in 2023.

As with the previous questioning of former Deputy CEO Choi, there was a significant difference of opinion between the prosecution and the defense regarding April 11, 2023, during the examination of Executive Director Noh. Prosecutors repeatedly asked, “Wasn’t BRV’s investment in Mezzion effectively decided on April 11, 2023, in broad terms?” The defense countered, “On April 11, 2023, only the investment amount and the contracting parties were determined; the details still needed to be negotiated.”

Executive Director Noh stated, “Mezzion and BRV had differing opinions on the investment amount, but on April 11, 2023, the investment amount was set at 50 billion won, as BRV wanted. The contracting parties, including Chairman Park Donghyun of Mezzion, were also decided at that time.” He added, “Since Mezzion accepted an investment amount close to BRV’s request, I did not think the investment would be rejected.” However, Executive Director Noh also noted, “Although the biggest issue in the contract was resolved, it would be difficult to say that everything had been agreed upon.”

The prosecution presented evidence that Chairman Park, on April 10, 2023, shared a document with an individual named ‘Zero Koo’ regarding the payment of a referral fee for introducing BRV’s investment. In response, Executive Director Noh testified, “At that time, I did report to Chairman Park that it would be good to set the investment at 50 billion won,” but clarified, “I understood it as meaning that a fee would be paid if the investment succeeded, not that the investment was finalized.”

In January 2025, prosecutors indicted the couple on charges of purchasing shares using undisclosed material information.

Article 174 of the Capital Markets Act strictly prohibits company executives, shareholders, licensing authorities, and contracting parties from purchasing securities or derivatives based on undisclosed material information.

Lee Sangwoo, The Law Times Reporter

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