Preemptive Stock Purchase Followed by Buy Report... Securities Firm Analyst Arrest Warrant

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The prosecution has requested an arrest warrant for an analyst (researcher) who wrote reports recommending stocks he owned, drove up the stock prices, and then sold the stocks to gain illicit profits worth around 500 million KRW.

The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (acting chief prosecutor Chae Hee-man) announced on the 10th that it has requested an arrest warrant for former securities firm analyst Mr. A on charges of violating the Capital Markets Act and other offenses.

Mr. A is accused of making illicit profits of 520 million KRW by publishing reports containing 'buy recommendations' for stocks he had purchased in advance from 2013 until last year, then selling the stocks after their prices rose. He was also charged with using securities accounts and mobile phones registered under other people's names to conduct transactions, violating the Electronic Financial Transactions Act and the Telecommunications Business Act.

The prosecution has determined that Mr. A committed these crimes over about 10 years by buying and selling 22 stocks using similar methods over a long period.

During this period, Mr. A worked at three securities firms and was selected as a 'Best Analyst' in his field.

Mr. A continued writing reports until early this year but resigned in March after the financial authorities began their investigation.

Earlier, the Capital Market Special Judicial Police (Special Judicial Police) of the Financial Supervisory Service detected signs of Mr. A's unfair trading, conducted an investigation, and referred the case to the prosecution with a recommendation for indictment at the end of last month.

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