Illegal Insider Trading of Venture Company –Korea Fair Trade Commission Will Take a Sanction from Next Month

As many business areas have expanded, Korea Fair Trade Commission (FTC) decided to take the sanction such as a surcharge against the venture company of illegal insider trading next month. FTC announced on July 23, “We completed the investigation which was conducted from April for venture companies, and are investigating the sanction against the exposed companies”.

Official concern of FTC said, “We already confirmed that some venture companies indiscreetly invested to the new field without sufficient investigation of propriety as the large companies did in the past. We exposed the fact of illegal insider trading in the new field advance process, and we will write the investigation report including the above substance and present to a meeting in the next month”.

However, it is forecasted that the sanction is not serious and tough than the original expectation because the investigation of the venture company will be executed through written investigation not to shrink the activities of venture companies.

Joong-Hyun Park sanjuck@donga.com