Financial Supervisory Service Employees Also Violate Stock Trading Regulations... Securities and Futures Commission Sanctions

8 People Fined 13.7 Million Won
"Authorities' Staff Repeatedly Participating in IPO Subscription Not Advisable"

Employees of the Financial Supervisory Service (FSS) who violated regulations on trading financial investment products, such as public offering subscription, have been sanctioned.

According to financial authorities on the 23rd, the Financial Services Commission imposed fines totaling 13.7 million KRW on eight FSS employees for violating trading restrictions at the 20th Securities and Futures Commission meeting held last November. The fines per individual ranged from 700,000 KRW to 4.5 million KRW.

The Capital Markets Act sets trading restrictions for employees of financial companies to prevent unfair practices and conflicts of interest. Employees are allowed to trade using only one account under their own name and must report their stock trading status quarterly. FSS employees are also subject to these regulations. Six employees failed to report their quarterly trading details, and two were found to have traded using multiple securities firms and accounts.

According to the related minutes, one Securities and Futures Commissioner pointed out, "It is true that public offering subscription has become a popular investment method among the public, but I do not think it is appropriate for financial authority employees to participate in public offering subscriptions every time."

He added, "If there was a system malfunction, they could have sold slowly," and said, "In cases where employees of institutions such as the FSS violate these regulations, in addition to fines imposed under the Capital Markets Act, institutional disciplinary actions should also be considered if the matter is serious."

In response, the FSS stated, "Currently, disciplinary procedures are initiated after completing inspections and submitting measures to the Securities and Futures Commission and the Financial Services Commission. If intentionality or motives for violation are confirmed during this process, disciplinary actions will be taken later."