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Jang Hyun-kook, former vice chairman of Wemade (Wemade) |
[Alpha Biz= Paul Lee] South Korea’s financial authorities have referred Jang Hyun-guk, former Vice Chairman and CEO of Wemade, to prosecutors over allegations of insider trading related to a bonus share issuance plan.
According to the Financial Services Commission (FSC) on Wednesday, the Securities and Futures Commission (SFC) held its 22nd meeting on December 18, 2023, and reviewed the investigation results concerning the violation of insider trading regulations involving Wemade stock.
The SFC’s resolution document states that on August 23, 2021, Jang allegedly acquired non-public information regarding a 1:1 bonus share issuance while reviewing the plan and disclosed it to an acquaintance, referred to as Mr. A, enabling stock trading based on this information.
Mr. A allegedly purchased 168,000 shares of Wemade stock under his name, his sibling's name, and his corporation’s account on August 30, 2021, after receiving the tip. He is also suspected of sharing the information with another acquaintance for stock trading purposes.
The SFC determined that Jang and A had violated the Capital Markets Act through the use of non-public, material information. Both individuals have been reported to prosecutors for further investigation.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
