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NH Investment Securities |
[Alpha Biz= Paul Lee] SEOUL, July 25, 2024 — South Korean financial authorities have launched a raid on NH Investment & Securities’ headquarters as part of an investigation into allegations that an employee profited from insider information.
According to officials, the Capital Markets Investigation Department of the Financial Services Commission (FSC) began executing the search and seizure on July 23. The investigation centers on potential violations of the Capital Markets Act’s prohibition on using material non-public information.
The NH employee in question is suspected of leveraging confidential information obtained while the firm was handling a tender offer for a listed company. Reports indicate the employee denies the allegations.
Regulators believe the individual may have traded the relevant stock or shared information with third parties while NH Investment & Securities was acting as a lead manager or custodian for the tender offer.
The FSC is also said to be examining whether other brokerage firms may have engaged in similar misconduct.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
