Financial Supervisory Service Raids KB Kookmin Bank... Insider Trading Using Non-Public Information

The Financial Supervisory Service conducted a search and seizure at KB Kookmin Bank on suspicion of illicitly gaining 12.7 billion KRW by using undisclosed information.

The Capital Market Special Judicial Police (Special Judicial Police) of the Financial Supervisory Service carried out a search and seizure on the 23rd at the KB Kookmin Bank headquarters office in Yeouido, Seoul, securing various documents and PC hard disks to investigate how employees obtained undisclosed information and how they transmitted it to family and acquaintances.

Earlier, the Financial Services Commission and the Financial Supervisory Service notified the prosecution through an emergency measure by the Chairman of the Securities and Futures Commission regarding allegations of unfair trading using undisclosed information by employees of the securities agency department at KB Kookmin Bank.

From January 2021 to last April, these employees acquired advance information about the scale and schedule of stock dividends while handling the stock dividend tasks for 61 listed companies, purchasing stocks of the relevant companies under their own and their family members' names. They then sold the stocks after the stock price rose following the stock dividend announcement, realizing profits through this trading method. Their total trading gains amounted to approximately 12.7 billion KRW.

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