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Photo = Yonhap news |
[Alpha Biz= Kim Young Taek] South Korea’s second-largest law firm, Lee & Ko, has recently come under investigation by financial authorities over allegations of leaking confidential information related to stock tender offers and capital increases.
According to a report on Tuesday, an employee at Lee & Ko is being investigated for allegedly leaking sensitive financial details of multiple companies.
Financial analysts have pointed to Samsung Electronics’ investments as a key factor in the stock surge of Rainbow Robotics. In January 2023, Samsung Electronics acquired a 10.2% stake in Rainbow Robotics through a third-party capital increase, investing KRW 58.9 billion.
By March, Samsung expanded its stake to 14.7%, eventually becoming the largest shareholder by the end of last year. Financial regulators have confirmed that details of this capital increase were leaked in advance and exploited for securities crimes.
Investigations identified Lee & Ko as the source of the leak. The firm was providing legal advisory services for Rainbow Robotics’ capital increase when IT personnel illicitly accessed attorneys' emails. A similar breach was discovered in 2023 regarding Osstem Implant's tender offer. The dental implant manufacturer had pursued voluntary delisting through a tender offer last year.
An official from the Financial Supervisory Service (FSS) stated, "Employees involved in the crime purchased stocks under their names and those of acquaintances before the price surge, then sold them for illicit gains ranging from hundreds of millions to billions of KRW."
In response, Lee & Ko told AlphaBiz, "The employees involved have already been dismissed, and we are fully cooperating with the FSS investigation." The firm further clarified, "No attorneys were involved, and we have reinforced cybersecurity measures with an external specialist firm."
The FSS has referred the implicated employees to the prosecution and is expanding its investigation into potential leaks involving other companies.
Alphabiz 김영택 기자(sitory0103@alphabiz.co.kr)
