ABL Bio, CEO's Family Too? "Not Under Investigation Yet"

More Than 10 Executives and Employees Under Investigation by Joint Task Force
Scope Could Widen Depending on Analysis of Seized Materials
Investigation Expected to Take Over Six Months to Complete

The bio industry and investors are closely monitoring how far the authorities' investigation into ABL Bio, which is embroiled in allegations of using undisclosed information related to technology exports, will expand. Criticism intensified when it was reported that the CEO's family members were also being investigated. However, it has been confirmed that they are not currently subjects of the investigation.

According to sources in the bio industry and financial sector as of September 22, the Joint Task Force for Eradicating Stock Price Manipulation—comprised of the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange—is conducting an investigation targeting some 10 employees and executives of ABL Bio, including CEO Sanghoon Lee. While there were rumors within and outside the industry that the CEO's family members were under investigation in connection with the suspicions following the task force’s search and seizure operations, our reporting has confirmed that the CEO's family members are not currently subjects of the investigation.

ABL Bio headquarters located in Samseong-dong, Gangnam-gu, Seoul. ABL Bio

A financial sector official well-acquainted with the Joint Task Force’s proceedings told us, "It cannot be ruled out that the situation may change depending on the analysis of confiscated materials," but added, "As of now, it is not true that the CEO's family has been named as subjects for investigation regarding this matter."

In April of last year, ABL Bio signed a technology export contract worth approximately KRW 4.1 trillion with GlaxoSmithKline (GSK) of the UK, and in November of the same year, entered into another technology export contract worth around KRW 3.8 trillion with Eli Lilly of the United States. It is known that the task force began its investigation after discovering that some ABL Bio employees and executives may have illegally traded company shares just before these disclosures. On September 15, the task force conducted search and seizure operations at eight locations, including ABL Bio's headquarters in Gangnam-gu, Seoul.

This latest investigation into ABL Bio began with abnormal transaction surveillance by the Korea Exchange. Unfair trade cases in the capital market typically proceed through three stages: surveillance, investigation, and action. The exchange identifies accounts that engaged in large-volume trades around the time of official disclosures—trades not characteristic for those accounts—then passes information on suspicious insiders to the financial authorities. Based on this information, the joint task force carries out search and seizure and questioning. After the investigation concludes, the Capital Market Investigation and Deliberation Committee and the Securities and Futures Commission decide on actions, which may include the imposition of fines or referrals to investigative agencies.

One industry official noted, "Considering the critical importance of future value, research and development, and transparency in management for bio technology companies, whether the scope of the investigation will expand beyond what is currently known remains a highly significant issue."

This content was produced with the assistance of AI translation services.