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Photo: Financial Supervisory Service / Yonhap News |
[Alpha Biz= Paul Lee] The Financial Supervisory Service (FSS) has imposed disciplinary measures on an employee of Hana Securities for violating trading regulations by conducting stock transactions under their spouse’s name.
According to a regulatory disclosure by the FSS on July 14, a mid-level manager (Mr. A) at Hana Securities was given a three-month pay cut and fined ₩1 million (approximately $720) after it was found that he executed 115 stock trades across 41 different listed companies, totaling ₩174 million (approximately $125,000), using his spouse’s account between June 2018 and June 2020.
Under Korea’s Capital Markets Act, employees of financial investment companies are allowed to trade listed securities only through a single pre-approved account registered under their own name, and are required to report trading activity regularly to their employer. This restriction aims to prevent the misuse of non-public information and other unfair trading practices.
The FSS concluded that Mr. A deliberately used his spouse’s account to circumvent these rules and viewed the act as a deliberate breach of internal controls. Accordingly, the regulator imposed a disciplinary action classified as “severe,” which includes restrictions on future eligibility for executive roles in financial investment firms.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
