Financial and Securities Crime Investigation Cooperation Group Conducts Search and Seizure at Hana Financial Investment over 'Front-Running Suspicion'

The Joint Securities Crime Investigation Unit, which investigated securities and financial crimes, officially relaunched on the 1st after about a year and a half since its abolition, with a new name. The photo shows the building directory installed in the lobby of the Seoul Southern District Prosecutors' Office annex on that day. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Yoo Byung-don] The prosecution has conducted a search and seizure of Hana Financial Investment's office and the residence of a former CEO amid allegations of 'front-running trading' and other suspicions.

The Financial and Securities Crime Investigation Cooperation Team of the Seoul Southern District Prosecutors' Office (Head Park Sung-hoon) dispatched prosecutors and investigators on the 30th to Hana Financial Investment's office in Yeouido, Seoul, and the residence of former CEO Lee to secure related materials. This is the first search and seizure since the cooperation team was established on the 1st of this month.

Earlier, the Financial Supervisory Service (FSS) had requested an investigation by the prosecution after detecting suspicions of front-running trading by former CEO Lee during a comprehensive audit of Hana Financial Investment in October last year and subsequent sector inspections.

At that time, the FSS reportedly discovered suspicious transactions using undisclosed insider information in securities accounts under former CEO Lee's name, managed by Hana Financial Investment's operations staff from 2017 to 2019. There were indications that stocks related to KOSDAQ-listed companies were purchased before corporate analysis reports were released to the market.

The cooperation team is reportedly focusing on allegations of unfair trading by former CEO Lee. Under the Capital Markets Act, trading using undisclosed important information related to company operations to gain profits or avoid losses constitutes unfair trading.

After the FSS requested the investigation, former CEO Lee issued a statement explaining, "Due to various meetings, events, and major issues that I had to oversee as CEO, I entrusted the account to an employee, and I was not involved in any trading related to the allegations raised by the FSS."

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