Obtaining unfair profits using undisclosed information... Securities and Exchange Commission, filing complaint and notification to the Heavy Water Investigation Office

(Seoul = Yonhap News) Reporter Kang Ryu-na = The Securities and Futures Commission under the Financial Services Commission reported and notified two insiders to the Serious Crimes Investigation Office of two insiders who used undisclosed important information acquired in the course of business to buy and sell company stocks and obtained unfair profits based on this.

According to data from the Securities and Exchange Commission on the 11th, Mr. B, the CEO of venture investment company A, is the CEO of listed company C, in which the company invested, and an actual executive of listed company D, another investment company, and is suspected of using undisclosed important information.

Mr. B created favorable information that Company D had decided on a free capital increase and instructed Mr. E, a financial executive of Company C, to purchase shares of Company D through Company C's account before the announcement. Afterwards, it was investigated that billions of won worth of illegal profits were obtained.

It was revealed that Mr. E also made illegal profits worth tens of millions of won by buying and selling shares of Company D through his own account.

According to the Financial Services Commission, if an insider of a listed company conducting a free capital increase trades information in advance or allows others to use it, he or she may be subject to criminal punishment, including imprisonment for more than one year or a fine of up to six times the amount of unjust enrichment, for violating the Capital Markets Act.

The Financial Services Commission emphasized, “We plan to respond strictly to unfair trading practices in the capital market using undisclosed important information.”