Employee of KB Kookmin Bank Arrested for Stock Investment Using 'Non-public Information'... 6 Billion KRW Illicit Gains (Update)

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An employee of KB Kookmin Bank was arrested for making unfair profits worth approximately 6 billion KRW by conducting dozens of stock trades using undisclosed information.

According to the Financial Supervisory Service on the 11th, the Capital Market Special Judicial Police (Special Judicial Police) arrested Mr. A, an employee of the Securities Agency Division at KB Kookmin Bank, on charges of violating the Capital Markets Act. The Seoul Southern District Court issued an arrest warrant on the same day.

The Special Judicial Police confirmed that Mr. A, while working in the division, obtained undisclosed information related to a free capital increase and traded about 60 stocks from 2021 to 2023. During this process, Mr. A’s unfair profits were estimated to be around 6 billion KRW.

Furthermore, the Special Judicial Police plan to apply for arrest warrants for other employees in the same division who also made unfair profits using the same method, besides Mr. A. The total unfair trading profits of these individuals are estimated to be around 12.7 billion KRW.

Earlier, the Financial Services Commission and the Financial Supervisory Service notified the prosecution through an emergency measure (Fast Track) by the Securities and Futures Commission Chairman regarding allegations of unfair trading using undisclosed information by employees of the KB Kookmin Bank Securities Agency Division. The Special Judicial Police conducted a search and seizure at KB Kookmin Bank’s headquarters office and secured related materials.

A Financial Supervisory Service official explained, "We first applied for an arrest warrant for Mr. A, who led the case and had the largest amount of unfair profits," adding, "It has been confirmed that all employees in the related division used undisclosed information."

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