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Financial Services Commission. (Photo courtesy of FSC) |
[Alpha Biz= Paul Lee] The Financial Services Commission’s Securities and Futures Commission (SFC) announced on May 21 that it has decided at its regular meeting to report and refer executives of a pharmaceutical company and an electronic component manufacturer to the prosecution for violations of the Capital Markets Act involving unfair trading.
According to the SFC, four executives and employees of pharmaceutical company A used undisclosed material information related to new drug development in 2023. They purchased shares shortly before the related announcement, shared the information with acquaintances, and sold the shares after the stock price rose, earning several hundred million won in illegal profits.
Similarly, four executives of electronic component manufacturer B engaged in fraudulent trading by falsely announcing a themed new business. In 2023, they falsely declared plans to pursue an overseas mineral development project unrelated to their main business. The stock price surged about 24% in a short period following the false announcement and media reports, allowing the executives holding company shares to gain tens of billions of won in illicit profits.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
