Five or so current executives who are alumni of the Seoul National University Business Club met through the Seoul National University Business Club and a global consulting firm. After moving to private equity fund management companies and listed companies, they performed M&A-related work for about five years and shared non-public information on five stocks. They also provided this information to their families and acquaintances, who used it for stock trading. By purchasing the relevant stocks before disclosing the information and disposing of them at a high price after the disclosure, they gained more than 20 billion won in unfair profits. The Joint Response Team composed of the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange conducted a search and seizure on them and took measures to suspend payments from securities accounts. They plan to pursue further actions such as prosecution and imposition of a surcharge of up to twice the amount of unfair profit.
