(Seoul = Yonhap News) Reporter Jiyeon Kim = Insiders who made unfair profits by using undisclosed information, such as a large-scale paid-in capital increase accompanied by a change in management rights, were caught by the authorities.
At its regular meeting on the 28th, the Securities and Futures Commission announced that it had filed a complaint and notified the Serious Crimes Investigation Office of participants in the paid-in capital increase who took unfair profits by using undisclosed important information related to a large-scale paid-in capital increase involving a change in management rights.
Executives and employees of other listed companies and affiliated companies who participated in a large-scale paid-in capital increase involving a change in management rights of a listed company, as well as their acquaintances, are suspected of having learned or received undisclosed important information related to the bequest through their duties and using it to obtain unfair profits of approximately 1.25 billion won.
It was found that they used and passed on undisclosed information with the expectation that the fact that celebrities participated in large-scale bequests, changes in management rights due to third-party bequests, improved financial status, and the possibility of pursuing new businesses through surplus funds would significantly increase the stock price.
The Financial Services Commission confirmed the relevant circumstances through a combination of search and seizure, digital forensic analysis, and question-and-answer process.
In another case, executives and information recipients of a corporation that acquired shares and management rights of a listed company were notified to the Central Investigation Agency on charges of violating the ban on using undisclosed important information.
Mr. C, an executive director of an unlisted company that decided to take over the management rights of listed company B through stock transfer and paid-in capital increase, passed undisclosed information related to the management rights transfer agreement to an acquaintance (primary information recipient) and had them use it to buy and sell company B's stocks.
The acquaintance is accused of obtaining unfair profits worth 100 million won by using this undisclosed information to buy and sell Company B's stocks and passing on the undisclosed information to three relatives (secondary information recipients) to use.
Three relatives who were secondary recipients of information were fined on charges of disrupting market order.
According to the Financial Services Commission, not only company executives and employees but also those who have entered into or are negotiating to conclude a contract with the company may be subject to criminal punishment, such as a fixed-term prison sentence of one year or a fine (up to six times the amount of unjust enrichment), for violating the Capital Markets Act if they use undisclosed important information learned in connection with their duties or allow others to use it.
Those who receive information may also be subject to a fine of up to 1.5 times the amount of unfair profits for disrupting market order.
