Prosecutors are conducting a raid of Rainbow Robotics, a robot specialist corporations, over allegations that employees used nonpublic information to reap illicit gains during the process of becoming a subsidiary of Samsung Electronics. Samsung Electronics' headquarters was also included in the raid targets the same day.
According to legal sources on the 18th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office said it was executing search and seizure warrants at Samsung Electronics' headquarters in Suwon, Gyeonggi, Rainbow Robotics' headquarters in Yuseong-gu, Daejeon, and the homes of former and current company employees.
On the 18th, the Securities and Futures Commission of the Financial Services Commission filed a criminal complaint with prosecutors against the current CEO of Rainbow Robotics and the former chief financial officer on suspicion of violating the Financial Investment Services and Capital Markets Act. It was also reported to have requested additional investigations into 14 retail investors.
They are suspected of using nonpublic information to gain a total of 3 billion–4 billion won in illicit profits during 2022–2024 as Rainbow Robotics was being acquired by Samsung Electronics.