The Financial Supervisory Service has imposed a three-month salary reduction and other severe disciplinary measures on an employee of Hana Securities who traded stocks under their spouse's name.
According to a disciplinary announcement by the Financial Supervisory Service on July 14, an employee at the manager level, referred to as A, at Hana Securities was found to have violated trading restrictions for employees of financial investment firms. As a result, A received a three-month salary reduction and a fine of 1 million won.
It was confirmed that from June 2018 to June 2020, A traded listed stocks totaling 174 million won using an account at another securities firm under the spouse's name, and failed to report these transactions. The total number of transactions amounted to 115 trades across 41 different stocks.
Under the Capital Markets Act, employees of financial investment firms, including securities companies, are required to use only one account registered under their own name with the company when trading listed stocks and similar securities. They must also regularly report their trading details to their affiliated company.
This regulation is intended to prevent violations of the Capital Markets Act, such as unfair trading using undisclosed information, by employees of financial investment firms.
The Financial Supervisory Service determined that A used the spouse's name for the purpose of circumventing regulations by utilizing job-related information, and therefore decided on severe disciplinary action. Disciplinary measures imposed by the Financial Supervisory Service include dismissal, suspension, salary reduction, reprimand, and warning. A salary reduction or higher is classified as severe disciplinary action, which restricts future appointments as an executive at financial investment companies.
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