South Korean authorities uncover 20 billion won M&A insider trading cartel

South Korean financial authorities have uncovered an “information cartel” composed of financial professionals who allegedly used non-public merger and acquisition (M&A) information to generate over 20 billion won in illegal profits over a five-year period.

The suspects, who established connections through prestigious university business clubs and global consulting firms, reportedly shared sensitive data regarding public tender offers and corporate restructuring. After moving to various roles in private equity firms and listed companies, they allegedly utilized their professional access to exchange favorable information and involved family members and acquaintances in stock trading.

The Joint Response Team to Eradicate Stock Price Manipulation, comprising the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange, conducted search and seizure operations at approximately 20 locations, including offices and residences. Authorities have also frozen the securities accounts of certain suspects to prevent the concealment of illicit gains and are considering fines of up to twice the amount of the illegal profits.