Failure to Submit Securities Registration Statement... NH Investment & Securities and KB Securities Fined 1.2 Billion KRW

4 Exchange Executives Fined a Total of 19 Million KRW for Violating Stock Investment Regulations

On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where financial authorities decided to include mortgage loans (Judaemdae) in the 'debt refinancing' infrastructure scheduled to launch in May by the end of the year. Financial authorities explained that the purpose is to reduce the interest burden on mortgage loans by building a debt refinancing platform that allows users to compare financial sector loan interest rates at a glance and switch loans easily. Photo by Dongju Yoon doso7@

NH Investment & Securities and KB Securities were each fined over 1.2 billion KRW by financial authorities for selling derivative products without submitting securities registration statements.

According to the financial sector on the 26th, the Financial Services Commission's Securities and Futures Commission decided at its 12th meeting to impose fines of 1.223 billion KRW each on NH Investment & Securities and KB Securities for violations of the Capital Markets Act.

As the issuer of derivative-linked securities, NH Investment & Securities solicited subscription applications for 24 derivative-linked securities (DLS) through the underwriter KB Securities from August 2018 to November 2019.

Through this, they raised 407.7 billion KRW worth of DLS from 953 investors but were caught by financial authorities for failing to submit securities registration statements three times.

KB Securities was pointed out for soliciting subscription applications and recruiting investors for 24 DLS that could not be offered because NH Investment & Securities did not submit the securities registration statements.

Meanwhile, the Securities and Futures Commission imposed a total fine of 19 million KRW on four Korea Exchange employees for violating financial investment product trading restrictions following a comprehensive inspection of the Korea Exchange.

These employees were caught for trading listed stocks using accounts in their own names without notifying the exchange, their employer, of the account openings and quarterly trading details.

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