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Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] SEOUL, May 20 — South Korea’s financial regulators have referred eight individuals, including a former executive of NH Investment & Securities, to prosecutors on allegations of profiting from material non-public information.
According to the Securities and Futures Commission under the Financial Services Commission, the individuals allegedly used undisclosed information related to tender offers to trade stocks and generate illicit gains. The former executive is accused of repeatedly sharing such information with his spouse and acquaintances between May 2023 and September 2025.
Regulators also imposed the maximum allowable monetary penalties on information recipients, charging up to 1.5 times the illicit gains for secondary recipients and 1.25 times for tertiary recipients.
The case marks the second such incident involving NH Investment & Securities this year. The firm said it has since strengthened internal controls, including stricter compliance pledges, expanded monitoring of executives’ family accounts, and adoption of a “one strike out” policy for violations.
The company added that it has dismissed the executive and taken additional disciplinary measures, including clawbacks of bonuses and suspension of unpaid compensation.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
