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HUBO, a bipedal humanoid robot developed by Rainbow Robotics. (Photo = Rainbow Robotics) |
[Alpha Biz= Kim Jisun] South Korean prosecutors have launched an investigation into Rainbow Robotics, a robotics company affiliated with Samsung Electronics, over allegations that insiders profited from non-public information related to Samsung’s stake acquisition.
According to legal sources on March 12, the Seoul Southern District Prosecutors’ Office’s Joint Financial and Securities Crime Investigation Unit recently received a complaint from the Financial Services Commission (FSC) alleging front-running and insider trading by individuals connected to the company.
Samsung Electronics acquired shares in Rainbow Robotics between 2022 and 2024, eventually becoming its largest shareholder. Prosecutors suspect that certain insiders obtained confidential information about the acquisition and used it to trade shares, generating illegal profits estimated at 3 billion to 4 billion won ($2.2 million–$3 million).
The FSC’s Securities and Futures Commission investigated the case for about a year before referring it to prosecutors. Among 16 individuals under suspicion, two were formally reported for prosecution due to the scale and seriousness of their alleged gains, while the remaining 14 were referred for further investigation.
The probe reportedly includes Rainbow Robotics’ CEO and chief financial officer (CFO), along with employees, as well as their spouses, relatives, and acquaintances who may have participated in the trades.
Rainbow Robotics was founded in 2011 by researchers from the KAIST HUBO Lab, which developed South Korea’s first bipedal humanoid robot, HUBO. The company went public on the KOSDAQ in 2021 with a share price of about 10,000 won.
Its stock price surged after Samsung Electronics began investing in the company and later became its largest shareholder in late 2024. Prosecutors suspect insiders purchased large amounts of shares before the information became public, allowing them to profit from the subsequent price jump.
Amid strong investor interest in robotics and technology stocks this year, Rainbow Robotics’ market capitalization has surpassed 13 trillion won, with shares closing at 760,000 won on March 12.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
