KOSDAQ Listed Company CEO Indicted Without Detention for Selling Stocks with Prior Knowledge of Adverse News, Gaining 1 Billion Won
- Input
- 2025-09-23 11:02:41
- Updated
- 2025-09-23 11:02:41
9,996,100,000 Won of Illegal Gains... Accused of Violating Capital Markets Act
Two Executives and Disclosure Officer Indicted on Summary Charges for Using the Same Information
Two Executives and Disclosure Officer Indicted on Summary Charges for Using the Same Information
Seoul Southern District Prosecutors' Office Financial Investigation Division 1 (Chief Prosecutor Lim Se-jin) announced on the 23rd that they have indicted without detention the CEO A of a KOSDAQ-listed medical device manufacturing company on charges of violating the Capital Markets Act.
A is accused of having pre-identified significant undisclosed adverse information and selling company stocks to gain billions of won in illegal profits.
According to the prosecution, A obtained in advance the undisclosed adverse information that 'a competitor's lawsuit in a U.S. court resulted in a verdict of damages amounting to 452 million dollars (approximately 633.7 billion won).' Before this information was disclosed, he sold the company stocks held in his and his spouse's names, securing illegal gains amounting to 9,996,100,000 won.
Additionally, two company executives who used the same information to gain 142,570,000 won and 139,330,000 won respectively, and a disclosure officer who gained 47,430,000 won, were indicted on summary charges.
The prosecution considered the fact that the two company executives submitted a confession to the prosecution seven days after the stock sale, contributing to the clarification of the criminal facts, and applied the 'reduction of punishment, etc.' provision of Article 448-2, Paragraph 1 of the Capital Markets Act.
However, regarding the illegal gains acquired through their crimes, they have each been sentenced to fines and confiscation exceeding these gains to thoroughly recover the criminal proceeds.
A prosecution official stated, "We will continue to respond strictly to crimes where insiders of listed companies use undisclosed internal significant information to gain illegal profits at the expense of general investors."
welcome@fnnews.com Jang Yu-ha Reporter