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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s Financial Services Commission has imposed more than 1 billion won in penalties on a former broadcasting company employee who profited from undisclosed internal information, with additional sanctions levied on a family member who also benefited.
The Securities and Futures Commission, operating under the FSC, announced on June 10 that it imposed a total of approximately 1.08 billion won in surcharges on individuals involved in unfair trading practices in violation of rules prohibiting the use of material non-public information.
According to the commission, an employee identified as A, who worked in the disclosure team of the finance department at SBS, used favorable non-public information obtained during employment to purchase stocks under his own name between October and December 2024, generating illicit gains of about 850 million won.
The commission also imposed a surcharge of 39.4 million won on A’s father, identified as B, who allegedly used the shared information to earn roughly 20 million won in illegal profits. The penalty amounts to twice the illicit gains.
Although regulations allow exemptions when illicit profits are below 20 million won, the commission applied the maximum penalty rate in this case.
The SFC stated it will maintain a zero-tolerance approach toward unfair trading practices in the capital market and actively utilize newly introduced sanctions, including surcharges, to prevent illegal profit-making based on insider information.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
