Kyung Nam Pharm’s stock tumbles on suspicion of manipulation

The stock of Kyung Nam Pharm Co., the maker of decades-old vitamin C product Lemona, crashed Monday on charges of stock manipulation.

The pharmaceutical company’s stocks closed at 7,200 won ($6.20), down 1,170 won, or 13.98 percent, on the tech-laden KOSDAQ.

The Financial Supervisory Service suspects the sudden skyrocketing of the Korean pharmaceutical company’s stock prices in April may have resulted from stock manipulation by the drug maker and others.

Kyung Nam Pharm stocks, which stayed in the 2,000 won range until late March, first touched the daily maximum limit of 30 percent on March 27. After hitting the upper ceiling 10 times, the stocks reached as high as 13,000 won on April 17.

The special investigation unit of the financial watchdog is looking into whether Kyung Nam Pharm provided false information that Chinese regulators’ approval for exporting Lemona is imminent, according to industrial sources.

After registering Lemona’s trademark in China in 2011, Kyung Nam Pharm filed for the approval of the China Food and Drug Administration, yet have not shown reliable progressions up to date.

First launched in 1983, Lemona has gained quick recognition among Chinese tourists in Korea since it hired hallyu actor Kim Soo-hyun as the vitamin product’s spokesperson.

By Chung Joo-won (joowonc@heraldcorp.com)