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Photo courtesy of NH Investment & Securities |
[Alpha Biz= Kim Jisun] SEOUL, November 4 (local time) — NH Investment & Securities Co., Ltd. announced that it will prohibit all executives from trading domestically listed stocks, as part of a broader initiative to strengthen internal controls and corporate ethics.
The company said in a statement on Monday that the decision was made by a newly established Task Force for Internal Control Enhancement (TFT), which was formed to reinforce ethical management and compliance standards.
The move follows an ongoing investigation by financial authorities into an Investment Banking (IB) division executive who allegedly engaged in stock trading using non-public information. The new policy aims to restore trust and prevent similar incidents.
Under the new rule, executives will be barred from purchasing Korean-listed equities, while investments in overseas stocks and exchange-traded funds (ETFs) will remain permitted.
Executives may still sell their existing domestic holdings.
The restriction will take effect on November 6, the company confirmed.
NH Investment & Securities explained that the measure is intended to enhance accountability and transparency among senior management, while also minimizing legal and reputational risks to the firm.
Earlier in the day, the company held an executive-wide meeting attended by about 50 senior executives, where participants shared concerns about the seriousness of the incident and reaffirmed their commitment to stronger ethical standards.
Yoon Byung-woon, Chief Executive Officer of NH Investment & Securities, said,
“Our executives will take the lead in setting an ethical example. Through the internalization of responsible and transparent management, we will turn this crisis into an opportunity for reform.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
