Samsung Electronics asked employees to comply with legal obligations regarding transactions of single-stock leveraged and inverse products set to launch on the 27th.
According to the related industry on the 26th, Samsung Electronics on this day guided employees via an email titled "Precautions when transacting single-stock (Samsung Electronics) leveraged and inverse products," saying, "Be sure to familiarize yourself with the obligations under the Financial Investment Services and Capital Markets Act and take special care to prevent any violations of the law."
If an employee conducts transactions in products that use Samsung Electronics stock as the underlying asset, the employee will be subject to the same regulations as directly transacting Samsung Electronics stock under the Financial Investment Services and Capital Markets Act. Accordingly, the use of undisclosed material information is prohibited, and the obligation to return short-swing trading profits also applies.
Executives must also bear the obligation to report their ownership status. The product in question is a single-stock leveraged and inverse product designed by multiple asset managers to track the daily price change of Samsung Electronics by ±2 times, and it is scheduled to be listed for the first time on the domestic market on the 27th. A product with SK hynix as the underlying asset will also be launched.
Financial authorities have said investors need to exercise particular caution because the product has a high-risk structure that amplifies gains and losses.