Justice Minister Nominee Faces Scrutiny Over Clinical Trial Lobbying Allegations

Justice minister nominee faces clinical trial lobbying questions

Kim Seung-won's confirmation hearing must examine his role in an expedited biotech trial review and prosecutors' suspended indictment.

Questions have emerged over Justice Minister nominee Kim Seung-won after it was revealed that prosecutors investigated him over alleged lobbying for approval of a clinical trial from the Ministry of Food and Drug Safety before ultimately suspending his indictment. The circumstances remain troubling. Because the justice minister oversees criminal justice administration, the allegations require a thorough examination.

On Oct. 12, 2021, during his first term as a lawmaker, Kim sent a text message to then-Food and Drug Safety Minister Kim Gang-lip at the request of an acquaintance surnamed Yang, asking for an expedited review of a clinical trial application submitted by biotech company Genencell for a prospective Covid-19 treatment.

Kim received a reply saying the matter had been forwarded to staff and relayed it to Yang. Two weeks later, on Oct. 26, the ministry approved Genencell's clinical trial plan. Evidence also emerged that a major Genencell shareholder surnamed Kang had attempted to donate 5 million won ($3,700) to Kim.

On Oct. 19, between Kim's message and the ministry's approval, Kang sold a 14 percent stake in Genencell to a Kosdaq-listed company for 6.3 billion won. He also secured a separate 5 billion won investment through convertible bonds. The company that became Genencell's largest shareholder later actively publicized the ministry's approval.

Prosecutors investigated the case and indicted Yang and Kang on charges including promising a bribe. But in December 2024, they suspended Kim's indictment. Such a disposition means prosecutors recognize grounds for criminal suspicion but decline to bring charges after considering various circumstances. Kim filed a constitutional complaint challenging the decision as unjust.

Kim maintains that he merely passed along a constituent request, but his conduct hardly demonstrates the responsibility expected of a National Assembly member.

According to the initial ruling against Kang, Genencell obtained approval after submitting materials to the ministry that included false results and omitted adverse effects. The clinical trial itself subsequently failed to proceed properly.

Can approval of a clinical trial, a matter directly affecting public health and lives, be handled this way? The circumstances raise suspicions that the ministry's approval ultimately became a tool for Genencell's stake sale and for boosting the share price of a Kosdaq-listed company.

Kim's confirmation hearing must therefore scrutinize whether the ministry properly handled the application and whether prosecutors appropriately decided to suspend his indictment.