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KOSDAQ IR Executive Reported to Authorities for Insider Trading
Health Technology · Biotechnology · yonhap_finance · 2026-09-02
A KOSDAQ-listed company's IR executive has been reported to law enforcement for using non-public information regarding new drug development to gain profits.
What Happened
Insider Trading Incident: The Securities and Futures Commission under the Financial Services Commission has referred an IR executive of a KOSDAQ-listed firm to law enforcement for illegal insider trading. The individual allegedly exploited non-public information regarding clinical trial results and technology transfer agreements for personal gain.
Financial Misconduct: Between March and June 2024, the executive reportedly used acquaintances' accounts to purchase company shares based on undisclosed positive news. In addition to the illicit profit of approximately 20 million KRW, the executive failed to comply with mandatory stock ownership reporting requirements.
Legal Consequences: Under the Capital Markets Act, individuals convicted of using material non-public information face at least one year in prison or fines up to six times the amount of profit gained. Furthermore, regulators may impose additional administrative penalties of up to double the illegal gains.
Regulatory Stance: The financial authorities emphasized their commitment to maintaining market integrity and protecting investor confidence. They stated that they will continue to monitor the market closely and take strict legal action against any form of unfair trading practices.