A former reporter at an economic outlet and an employee of a securities firm, who pocketed more than 10 billion won in unlawful gains through front-running using stock item reports, have been indicted and detained.
The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (Director General Kim Jeong-hwan) said on the 9th that it had indicted and detained former economic outlet reporter A and B, a former employee of a securities firm and accomplice, on charges of violating the Financial Investment Services and Capital Markets Act.
From 2017 through June this year, over about eight years, they allegedly bought shares of specific items, reported favorable articles, and then sold when the price rose, reaping illicit gains worth 11.2 billion won.
According to prosecutors, at the outset they used reports written by a reporter at the economic daily where A worked or had reporters write on instruction. Later, they expanded their methods by borrowing other reporters' names or publishing articles under the names of non-existent reporters.
Prosecutors said that from the beginning of the probe, in cooperation with the Financial Supervisory Service, they identified the existence of accomplice B, who had not been included among those accused.
Before the case was handed over, prosecutors preemptively filed for preservation for confiscation, and after transfer, through supplementary investigations such as searches and seizures, they preserved for confiscation luxury goods, hotel memberships, virtual assets, and stocks under borrowed names that A and B acquired as criminal revenue.
A prosecution official said, "We will track and strip criminal revenue to the end and, in cooperation with the financial authorities, respond strictly to financial and securities crimes."