An employee at a broadcaster has been indicted on suspicion of reaping about 800 million won in illicit stock-trading gains by using inside information that the company where the person works would sign a content supply contract with a global online video service (OTT).
On the 18th, the Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (Director General Kim Tae-gyeom) charged employee A, who is in charge of disclosures at the broadcaster, without detention on suspicion of violating the Financial Investment Services and Capital Markets Act.
After learning that the person's company would sign a favorable contract with a global OTT in the second half of 2024, A bought company shares through a securities account under the name of the mother. After the stock price rose, A sold the shares and allegedly pocketed 830 million won in profits.
A was found to have checked the progress of the negotiations through coworkers and to have tried to maximize revenue by mobilizing an over-the-counter derivative account (CFD). A also passed the insider information to the father, who reaped about 19.7 million won in illicit gains.
The Financial Services Commission detected the matter and imposed a penalty surcharge of about 1.04 billion won on A and about 39.4 million won on the father. Prosecutors decided that the father's penalty surcharge already exceeded the illicit gains and deferred booking.
The Seoul Southern District Prosecutors' Office said it would work closely with financial authorities so that retail investors are not harmed on a tilted playing field caused by information asymmetry.