Justice Minister nominee Rep. Kim Seung-won on Tuesday rejected allegations connecting him to an alleged stock manipulation scheme, citing that very controversy as a reason to back the ruling bloc's push for a criminal justice overhaul.
"Based on my belief that the investigative power is the most potent form of state power and should not be abused as such, I will do my best to ensure that such state power is fairly exercised, while upholding political neutrality," Kim said at Tuesday's confirmation hearing when asked about the allegations against him.
Kim also claimed the prosecution had selectively conducted "sweeping investigations targeting figures from the Democratic Party of Korea, including myself," while turning a blind eye to similar crimes committed by friendly politicians when former President Yoon Suk Yeol was in power.
Kim, a two-term lawmaker of the ruling Democratic Party who formerly served as a judge and attorney, was nominated to lead the ministry overseeing the criminal justice overhaul. At the time of his nomination in August, Kim was a member of the Legislation and Judiciary Committee.
Kim is accused of conveying a lobbyist's request that drug authorities approve clinical trials for Genencell in October 2021.
As soon as authorities approved the drug developer's clinical trials later that month, Sejong Medical, a company listed in South Korea that had earlier announced an investment in Genencell, saw severe fluctuations in its stock price until being suspended from trading on the Korea Exchange in 2024.
The prosecution later cleared Genencell founder Kang Se-chan of fraud charges, citing a lack of evidence. However, the People Power Party and some small stock investors who had bought Sejong Medical shares have claimed that a pump-and-dump scheme was in place.
Kim denied speculations that his request to the drug authorities was meant to allow the lobbyist, Genencell and its investors to pursue gains. He claimed that all he did was ask the authorities to address injustices in a clinical trial process against Genencell, at a time when South Korea was envisioning a homegrown COVID-19 treatment during the pandemic.
Kim has also come under fire for his alleged ties to a judge who had rejected an arrest warrant for Genecell founder Kang in 2022, as Kim was found to have hired the judge's son.
Kim sided with claims from Democratic Party committee members that the recent revelations were based on confidential information held by the prosecution. The Democratic Party has targeted independent lawmaker Rep. Han Dong-hoon, who was previously the chief of the People Power Party. Han spearheaded the move to divulge evidence reinforcing claims about Kim's role in the alleged stock manipulation case.
The ruling party and Kim have accused Han of resurrecting the practice of the prosecution abusing their power and breaching the human rights of the accused.
"I believe we must lay bare how such sensitive information found its way to Han," Kim said. "If I become minister of justice, I intend to conduct a thorough review to ensure the protection of universal human rights."
Asked about claims that Kim had abused his power as a lawmaker to defer his indictment, Kim said the decision went against his belief in his innocence and he filed a constitutional complaint to seek remedy.
He added that it would have been "nonsense" to use his power to defer his indictment at the time when he was protesting Yoon's invocation of martial law in 2024.
Regarding a court verdict that found Genencell's Kang guilty of fabricating animal test data to file its drug approval, Kim said it was not a matter for him to decide on before relaying the request, admitting he had no expertise in the field.
Kim, in the meantime, also denied that his wife and siblings had received unfair treatment through the operation of a community cooperative dedicated to running a facility for children with developmental disabilities.
Wiping tears from his eyes, Kim said the community cooperative had not received unfair treatment and that it was not meant to pursue personal gains for the family, adding that the People Power Party's claims "can deeply hurt the caregivers."
None of the 44 witnesses or four reference witnesses requested by the People Power Party appeared at Kim's confirmation hearing, due to the Democratic Party's rejection.
People Power Party Rep. Park Hyeung-soo said during the confirmation hearing that among the rejected witnesses his party requested were key figures including the lobbyist, Genencell founder and officials of drug authorities.
Along with Kim, confirmation hearings for Lee Hyoung-il, nominee for deputy prime minister for economic affairs and minister of finance and economy, and Democratic Party Rep. Lee So-young, who was picked to lead the SMEs and Startups Ministry, were concurrently held Tuesday.
consnow@heraldcorp.com
