South Korea's Securities and Futures Commission referred or reported suspects to prosecutors in four separate cases involving the alleged use and disclosure of material nonpublic information. It also imposed administrative penalties on second and third-level recipients who allegedly traded on the information, treating their conduct as market disruption under the Financial Investment Services and Capital Markets Act. The cases involved information about a planned tender offer, a rights offering, an acquisition and its prospective cancellation, and a large share and management-rights purchase. Alleged gains or avoided losses ranged from hundreds of millions to billions of KRW, while six downstream recipients in the tender-offer case allegedly gained about KRW 90 million. Two executives in that case also allegedly failed to report changes in their shareholdings. The commission reminded market participants that insiders can face criminal sanctions and penalties of up to twice their illicit gains, while downstream tippees can face penalties of up to 1.5 times their gains.
2026-09-16South Korea Financial Services Commission
South Korea's Securities and Futures Commission refers four insider trading cases to prosecutors and penalizes downstream tippees
South Korea's Securities and Futures Commission referred or reported suspects to prosecutors in four separate cases involving alleged trading on material nonpublic information. It also penalized second and third-level tippees for market disruption, with the cases covering tender offers, capital raising and corporate acquisition information.