Prosecutors Indict 17 Employees of KOSDAQ Listed Company for Insider Trading

About 50% of Jaegyeong Headquarters Employees Share Internal Information and Distribute It to Acquaintances

[Image source=Yonhap News]

[Asia Economy Reporter Heo Kyung-jun] Employees of a KOSDAQ-listed company in Busan who bought and sold stocks using insider information have been brought to trial.

The Anti-Corruption and Violent Crime Division of the Busan District Prosecutors' Office (Chief Prosecutor Park Hyun-gyu) announced on the 2nd that they have indicted a total of 18 people, including 17 employees of Company A, a KOSDAQ-listed company in the Busan area, and one outsider, on charges of violating the Act on Capital Market and Financial Investment Business.

They are accused of using undisclosed insider information that their company had received orders for electric vehicle parts from a global automobile manufacturer to trade stocks worth approximately 1.65 billion KRW from December 2020 to May last year, gaining an illicit profit of 330 million KRW.

It was revealed that Company A’s disclosure officer, accounting and tax personnel, and research and development (R&D) researchers were involved in this crime. They repeatedly shared information while trading stocks and disseminated the information to acquaintances.

Earlier in April this year, the Capital Market Investigation Team of the Financial Services Commission confirmed their crimes and reported them to the prosecution in July. Subsequently, the prosecution searched their offices and residences, confirmed the criminal charges, indicted 10 people without detention, and filed summary indictments against 8 others.

The prosecution believes that 17 employees related to the management of insider information, including disclosure officers, accounting and tax personnel, and R&D researchers?about 50% of the finance headquarters staff of the company?shared information collectively and repeatedly to trade stocks.

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