2023-08-09 06:54:02
Financial authorities have uncovered bank clerks who used undisclosed information to invest and made unjust profits through it. It is a policy to not only make it clear whether they are responsible for them, but also to check the appropriateness of the bank’s internal control system and respond sternly.
The Financial Services Commission and the Financial Supervisory Service announced on the 9th that through a joint investigation into unfair trade in the capital market, they discovered the use of important undisclosed information involving a large number of employees of a securities agency bank. The authorities notified the prosecution after taking emergency measures from the chairman of the Securities and Futures Commission.
KB Kookmin Bank Yeouido Head Office / Photo = Courtesy of Kookmin Bank
According to the Financial Supervisory Service and others, the employees of KB Kookmin Bank learned information about the scale and schedule of capital increase in advance while acting as an agent for free capital increase of 61 listed companies between January and April 2021. Using this, he and his family bought the stocks of the target stock before the disclosure of information and sold them when the stock price rose due to the public offering of the bonus issue, realizing a profit of about 6.6 billion won.
Some of them delivered the information on the bonus issue to their family members, relatives and acquaintances, as well as colleagues from other departments within the bank, so that they could use them for trading. Through this, a trading profit of 6.1 billion won was generated. In other words, a total of 12.7 billion won of unfair profits was acquired.
Apart from the investigation into the alleged unfair trade in the capital market, the financial authorities also conducted an on-site inspection of the bank from late March to early April. The bank’s internal control system related to the prevention of employees’ use of undisclosed information was also checked.
As a result of the inspection, insufficient points were found in the acquisition and management of internal information of clients within the securities agency department. The financial authorities plan to make it clear whether they are responsible for violations of related laws and regulations in the future along with measures to improve the internal control system.
The financial authorities plan to activate joint investigations on unfair trade in the capital market and take strict action against unfair trade practices, such as the pursuit of personal gain involving executives and employees of financial companies. It was decided to improve the internal control system to prevent executives and employees from using undisclosed information for financial companies that handle securities agency business, and to hold the financial company responsible for the related responsibilities, such as poor internal control, in the event of an unfair transaction involving executives and employees of the financial company. .
Cases of unfair gain using undisclosed information / Data = Financial Services Commission
The Financial Services Commission and the Financial Supervisory Service conducted a joint investigation through collaboration. It is an explanation that at the beginning of the investigation, an on-site investigation and forensic were conducted to secure important evidence, and then the substance of the case was revealed through transaction analysis and tracking of financial accounts.
An official from the financial authorities said, “Employees of financial companies, etc., where internal information of stock-listed corporations is concentrated through contractual relationships such as securities agencies and loans, are quasi-insiders under the Capital Markets Act.” We should keep in mind that we may be subject to criminal punishment in this case,” he said.
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