[Alpha Biz= Ellie Kim] NH Investment & Securities is facing renewed scrutiny over its internal controls after multiple cases involving the use of non-public information in tender offers were uncovered, with regulators reportedly deeming its corrective measures insufficient.

According to industry sources on February 19, NH Investment & Securities has continued to act as the lead manager in numerous tender offers, including deals involving companies such as JTC, Sam Mok S-Form, SK D&D, Ecomarketing, Englewood Lab, and Douzone Bizon.

Notably, the Douzone Bizon tender offer—valued at approximately KRW 2.2 trillion—marks the largest private equity-led tender offer in South Korea to date. The brokerage has maintained a dominant position in the market, leading 28 out of 55 tender offers (about 51%) between 2023 and the first half of 2025.

However, concerns have intensified following two separate incidents within six months involving alleged unfair trading practices linked to undisclosed tender offer information.

In July last year, the Financial Services Commission conducted a search and seizure related to employees suspected of using insider information. In October, a joint task force on stock manipulation uncovered an additional case involving a senior investment banking executive, prompting another investigation. In January this year, the Securities and Futures Commission referred those involved in the earlier case to prosecutors.

In response, NH Investment & Securities introduced internal control measures under CEO Yoon Byung-woon, including a complete ban on domestic stock trading by executives and enhanced monitoring of family accounts.

Despite these efforts, regulators and market participants have raised concerns that the measures may not be sufficient to restore investor confidence, particularly as the firm continues to play a leading role in high-profile tender offer transactions.

 

 

 

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