[Digital Today reporter Sangyeop Oh (오상엽)] The Financial Services Commission's Securities and Futures Commission filed a criminal complaint with prosecutors against 8 individuals, including a former senior executive at NH Investment & Securities, on suspicion of gaining illicit profits by using non-public information related to tender offers.

The commission said on May 20 it held its 10th regular meeting and filed the complaint against 8 people, including an NH Investment & Securities executive and the executive's spouse, on suspicion of violating the ban on using material non-public information.

It imposed the maximum statutory administrative penalty on 8 second- and third-tier recipients who allegedly received the information and used it to trade shares, applying charges of violating rules against acts that disrupt market order.

According to findings from an investigation by a joint response team of the Financial Services Commission, the Financial Supervisory Service and the Korea Exchange, the former senior executive and others are suspected of buying shares in 15 listed companies using non-public information learned while handling capital market work such as tender offers from May 2023 to September 2025. The investigation found they later sold the shares after the related information became public and gained illicit profits.

Investigators also confirmed indications they tried to conceal the illegal activity by using borrowed-name accounts. The executive used a borrowed-name account of an acquaintance of the spouse, and the spouse was also found to have used a borrowed-name account in another acquaintance's name.

The joint response team explained it confirmed the true parties behind trades spread across multiple accounts and evidence of collusion through searches and seizures and fund tracing.

The commission imposed sanctions not only on key suspects who directly used the information but also on those who received it. It imposed penalties equal to 1.5 times the illicit gains on second-tier recipients and 1.25 times the illicit gains on third-tier recipients.

The investigation found they received non-public information in advance, bought shares at low prices before general investors, and realised profits by selling at higher prices when share prices rose after disclosures such as tender offers.

The joint response team said it would cooperate actively with prosecutors' investigations into the 8 people accused of using material non-public information and carry out follow-up measures without disruption.

NH Investment & Securities said in a statement that the matter decided by the commission followed steps it had already taken, including setting up a task force to strengthen internal controls immediately after it became aware of the relevant facts in October last year and implementing company-wide checks and improvements.

NH Investment & Securities said it immediately dismissed and disciplined the executive found to have engaged in wrongdoing in accordance with internal rules and related procedures. It also said it completed economic disciplinary measures, including clawing back performance pay already paid, halting payment of unpaid performance pay, and withholding executive severance pay.

An NH Investment & Securities official said the company is responding strictly, in line with principles, to illegal and improper acts by executives and employees and would continue to improve its compliance management system to enhance market trust and protect investors. The official said it would also cooperate actively with future prosecutors' investigations and judicial procedures.