Eldest LG Daughter Koo Yeon-kyung and Husband Yoon Kwan Accused of Insider Trading
||2024.10.28
Koo Yeon-kyung, the head of the LG Welfare Foundation and eldest daughter of the late Koo Bon-moo, former chairman of the LG Group, and her husband, Yoon Kwan, CEO of BlueRun Ventures (BRV), are under investigation by the prosecution on allegations of violating the Capital Market Act and other related charges.
On the 25th, the People's Livelihood Economic Research Institute filed a complaint against Koo and Yoon with the Seoul Southern District Prosecutors' Office, requesting a thorough investigation into their alleged use of undisclosed information and obtaining unfair profits.
In the complaint, the research institute stated, “CEO Yoon instructed Koo to purchase shares in anticipation of a stock price increase through BRV’s investment decision, and Koo leveraged this information for personal gain."
It also claimed that Koo encouraged foundation employees to buy shares, with some actually making purchases, thus damaging the fairness and credibility of the capital market.
The institute further demanded that "the exact dates of the foundation employees’ stock purchases and the specific profit margins be clarified, and that Koo’s mother and sibling’s accounts be examined to prevent the possibility of proxy purchases."
The background of these allegations is tied to BRV Capital Management, where Yoon serves as Chief Investment Officer (CIO), making a decision in April of last year to invest 50 billion KRW in a KOSDAQ-listed biotech company, Company A. It is alleged that Koo bought shares while in possession of this advance investment information.
The stock price of Company A, which was in the 18,000 KRW range per share at that time, surged significantly after BRV’s investment announcement, reaching around 50,000 KRW.
Meanwhile, earlier this month, the Financial Services Commission notified the prosecution of the couple's alleged Capital Market Act violation, bringing attention to the case.
