Probe of Insider Trading Involving OCI Launched
By Kwon Mee-yoo
Staff Reporter
Prosecutors launched an investigation into allegations that executives of a major daily and the son of the incumbent prime minister used insider information to reap gains with the trading of shares in OCI, a Korean chemical firm.
The investigation came after the Financial Supervisory Service (FSS) referred the case to the prosecution at the end of last month.
The Seoul Central Prosecutor's Office summoned the two FSS regulators who were in charge of the investigation into the alleged illegal stock trading as references. The prosecution obtained related data from the financial supervisory body.
``We've summoned two FSS officials as an initial step for the investigation,'' a prosecution official said. ``We will summon more if illegal practices are found.''
But the prosecution was cautious about disclosing the identities of other possible suspects.
Previously, the FSS notified the prosecution that Kim Jae-ho, CEO of the Donga Ilbo newspaper, and other executives at the company had reaped billions of won in illegal trading gains.
At the same time, the opposition Democratic Party accused the son of Prime Minister Han Seung-soo of having reaped an unspecified amount in gains with insider information about OCI shares in 2007.
Donga Ilbo denied the allegations agains, saying, ``OCI was a stock recommended by (many securities firms) before we started investment in the stock. Donga Ilbo couldn't have known any insider information in question.''