FSS raids KB Kookmin over suspected stocks grift

The Financial Supervisory Service (FSS) raided the headquarters of KB Kookmin Bank in Yeouido, western Seoul, on Thursday, over suspicions that six employees used undisclosed information for personal profit.

A customer at a KB Kookmin Bank branch [YONHAP]

The Financial Supervisory Service (FSS) raided the headquarters of KB Kookmin Bank in Yeouido, western Seoul, on Thursday, over suspicions that six employees used undisclosed information for personal profit.

The FSS secured the related documents and PC hard drives at the bank to confirm whether its employees used the undisclosed information to trade stocks and shared the information with family.

The Financial Services Commission and the FSS notified the prosecution on Aug. 9 that employees handling securities of the listed companies at KB Kookmin Bank used the undisclosed information to reap profits.

The suspects identified details of the dates and volume of more than 60 listed companies that had planned to increase capital without consideration.

Capital increase without consideration is considered a good sign for investors, as shareholders are able to receive more shares without purchasing them.

They are estimated to have earned some 6.6 billion won ($4.9 million) from stock trading using the undisclosed information. Including their families and friends, the total profit gained from the unfair transactions reached around 12.7 billion won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]