Search and Seizure at Meritz Financial Group and Meritz Fire & Marine Insurance on September 25
Shares Purchased Using Family Members' Accounts
The prosecution has launched a compulsory investigation into allegations that former executives of Meritz Fire & Marine Insurance used undisclosed information to purchase shares and gain capital gains.
On September 25, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office, led by Chief Prosecutor Lim Sejin, conducted searches and seizures at the offices of Meritz Financial Group and Meritz Fire & Marine Insurance in Gangnam-gu, Seoul, as well as at the residences of the suspects.
This investigation began after the Securities and Futures Commission of the Financial Services Commission filed a complaint with the prosecution in July, accusing former president A and an executive-level director of Meritz Fire & Marine Insurance of violating the Capital Markets Act by using undisclosed information.
According to financial authorities, these individuals obtained advance knowledge in November 2022 of the planned merger between Meritz Fire & Marine Insurance and Meritz Securities under Meritz Financial Group, and purchased shares using accounts in the names of their family members.
They are suspected of selling these shares for a profit of several hundred million won immediately after the merger announcement, as the stock prices of Meritz Financial Group and related companies surged.
The Securities and Futures Commission also notified the prosecution of three other Meritz Fire & Marine Insurance employees who allegedly bought and sold treasury shares ahead of the merger announcement to make capital gains.
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