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Photo courtesy of NH Investment & Securities |
[Alpha Biz= Kim Jisun] SEOUL, October 28, 2025 — South Korea’s financial crime task force has conducted a raid on NH Investment & Securities, after uncovering evidence that a senior executive allegedly profited from insider trading involving multiple tender offers.
According to officials from the Joint Task Force for Curbing Stock Manipulation, the executive — identified only as Mr. A — is suspected of leaking undisclosed information about 11 separate tender offers to acquaintances over a two-year period, generating an estimated ₩2 billion (US$1.4 million) in illicit profits.
A tender offer is a corporate mechanism in which a company seeks to purchase shares directly from investors, typically at a premium price, to defend management control or consolidate ownership. Access to such information before public disclosure can offer significant trading advantages, making it a prime target for insider trading.
Investigators believe that Mr. A and his associates purchased large volumes of shares before public announcements and sold them after price increases, following the tender offer disclosures. Authorities also suspect cash transfers and the use of borrowed-name accounts, including those under family members, to conceal the transactions.
NH Investment & Securities, one of the country’s leading brokerages, has been a dominant player in Korea’s tender offer market, having managed over half of 55 such transactions between 2023 and mid-2025. Analysts warn that the raid could have significant reputational implications for the firm and the broader investment banking sector.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
