[Exclusive] DS Investment Securities Analyst Suspected of Insider Trading... Financial Supervisory Service Special Investigation Unit Conducts Search and Seizure

[Asia Economy Reporter Geum Bo-ryeong] The Capital Market Special Judicial Police (Special Judicial Police) of the Financial Supervisory Service has conducted a search and seizure at DS Investment & Securities on suspicion of analyst front-running.

According to the financial investment industry on the 24th, the Special Judicial Police of the Financial Supervisory Service carried out a search and seizure at DS Investment & Securities located in Yeouido, Yeongdeungpo-gu, Seoul, from the morning on the same day on suspicion of analyst front-running.

Analyst front-running refers to the act of buying or selling related stocks in advance before releasing a corporate analysis report (report) on a specific stock to gain profits. This is a violation of the Act on Capital Markets and Financial Investment Business.

The Special Judicial Police, launched in July last year, previously conducted a search and seizure at H Securities on suspicion of analyst front-running. This is the second search and seizure case involving DS Investment & Securities. The financial investment industry views the DS Investment & Securities and H Securities cases as similar. The Special Judicial Police stated, "It is difficult to provide specific details as the search and seizure is still ongoing," but added, "It can be considered similar to the H Securities case in terms of analyst involvement."

The Special Judicial Police can conduct compulsory investigations such as checking communication records and search and seizure in investigations of unfair trading activities including market manipulation (stock price manipulation) and insider trading.

This content was produced with the assistance of AI translation services.