Alphabiz - FSC Refers Former and Current NH Investment & Securities Employees to Prosecutors Over Insider Trading in Tender Offers

Photo: NH Investment & Securities

[Alpha Biz= Kim Jisun] The Financial Services Commission (FSC) has referred current and former employees of NH Investment & Securities to the prosecution for using undisclosed information related to tender offers.

At its 2nd regular meeting on January 21, the Securities and Futures Commission, under the FSC, also imposed total fines of KRW 3.7 billion on acquaintances who traded based on information received from the employees.

Investigations revealed that NH Investment & Securities staff obtained non-public information concerning tender offers for three listed companies while performing their duties. They used this information for personal trading and, in the case of a former employee, passed it on to others, generating approximately KRW 370 million in illicit gains.

Furthermore, six individuals who received the information through secondary and tertiary channels were found to have earned a combined KRW 2.9 billion in illegal profits.

NH Investment & Securities is the leading domestic operator in the tender offer market, having handled 30 of the 47 tender offers conducted in South Korea since 2022.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)