Securities Firm Analyst Arrested on 'Insider Trading' Charges... FSC Special Investigation Unit's First Case

[Asia Economy Reporter Eunmo Koo] The securities analyst involved in the "Securities Firm Analyst Insider Trading Case," which attracted attention as the first investigation directive since the launch of the Financial Supervisory Service's Special Judicial Police, has been detained.

On the 20th, the Financial Supervisory Service announced that the Seoul Southern District Prosecutors' Office's Joint Securities Crime Investigation Unit has detained and indicted one securities firm analyst on charges of violating the Capital Markets and Financial Investment Business Act and the Act on the Aggravated Punishment of Specific Economic Crimes. One accomplice was indicted without detention on the same charges.

The securities analyst A (39 years old) informed his accomplice friend B (39 years old, office worker) in advance about the stocks listed in the research analysis report he prepared, prompting B to purchase them. B sold the stocks at the time of the price increase after the report was published, obtaining an unfair profit worth approximately 760 million KRW. Subsequently, from August 2015 to August 2019, A received cash and other valuables worth about 600 million KRW from B as compensation for the gains.

In August last year, the Financial Supervisory Service received the case via fast track from the Financial Services Commission and began investigation directives through the special judicial police. Although the court dismissed the detention warrants for A and others in November, supplementary investigations were conducted after the case was sent to the prosecution, and detention warrants were issued this month.

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