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[Alpha Biz=(Chicago) Reporter Paul Lee] In the future, due to Dow Kiwoom Chairman Kim Ik-rae and other corporate owners eating and bouncing stocks, as they did during the SG Securities crash, the crash is expected to reduce damage to individual investors and market disruption.
According to Lee Yong-woo's office of the Democratic Party of Korea on the 16th, the National Policy Committee handled a revision to the so-called "Kim Ik-rae Act" and the Capital Market and Financial Investment Business Act (Capital Markets Act), which includes a pre-disclosure system for insider stock trading.
The processed Kim Ik-rae Act added a revised opinion from the Financial Services Commission to a bill proposed by Rep. Lee Yong-woo in April last year.
Under the revision to the National Assembly, if major shareholders (hold more than 10%) and executives sell their holdings in large quantities (more than 1% of the shares issued) over three months, they will be disclosed to the Securities and Futures Commission under the Financial Services Commission and the Korea Exchange in advance.
In addition, the most important point of prior disclosure was set as "the period prescribed by Presidential Decree from 30 days to 90 days."
The revision is aimed at preventing a recurrence of the cases of Dow Kiwoom Chairman Kim Ik-rae and Seoul Gas Chairman Kim Young-min, who each sold tens of billions of shares before the stock crash.
The office of Rep. Lee Yong-woo, who represented the bill, told Alpha Economy, "If Chairman Kim Ik-rae and others sold shares after knowing prior information, it would be a violation of insider trading," adding, "If there had been a pre-disclosure system for insider stock investment, there would not have been a crash from SG Securities, which produced numerous victims."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
