Several Samsung executives are being investigated by a South Korean regulator under suspicion of insider trading, The Wall Street Journal reported late last week.
An official for the Financial Services Commission told WSJ that a probe into the accusations was launched after the Korea Exchange monitored suspicious trading activity.
Nine Samsung executives allegedly purchased nearly $35 million to $43 million worth of Cheil Industries shares prior to it being made public that Cheil planned to buy construction affiliate Samsung C&T earlier this year.
The accused executives, who are from various Samsung affiliates, supposedly bought the shares during the months of April and May, prior to when Cheil officially acquired Samsung C&T for $8 billion in September.
A Samsung Group spokeswoman confirmed to WSJ that there is, in fact, an investigation taking place but refrained from providing any additional information until it is completed.
“We understand the investigation involving certain individuals is still in its early stage,” she added.
At the time the deal took place, shareholders of Samsung C&T were adamant that the price of $8 billion undervalued the business unit, especially considering that Samsung C&T’s 4.1 percent stake in Samsung Electronics was valued at $7.5 billion at the time, WSJ reported.
The merger passed despite attempts to block the deal, but now with the announcement of the insider trading investigation, more scrutiny may fall on the Cheil Industries and Samsung C&T deal.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More