Prosecutors raid Rainbow Robotics over suspected insider trading

Robots are displayed at Rainbow Robotics in Daejeon, Oct. 2, 2024. Korea Times photo by Jung Da-bin

Prosecutors on Wednesday raided robot platform company Rainbow Robotics, a subsidiary of Samsung Electronics, over allegations of insider stock trading by its executives and employees.

The Seoul Southern District Prosecutors Office sent investigators to the KOSDAQ-listed company's headquarters in the central city of Daejeon to seize possible evidence related to the suspected insider trading.

The financial market authorities last month asked the prosecution to investigate the allegations that 16 people, including two senior executives of Rainbow Robotics, obtained illicit profits worth billions of won by using undisclosed insider information during the process of the company being incorporated as a Samsung Electronics subsidiary.

They are suspected of earning 3 billion won ($2 million) to 4 billion won through illicit stock trading between 2022 and 2024, when Samsung acquired the largest stake in Rainbow Robotics.

It is reported that the homes of the Rainbow Robotics executives and Samsung's Suwon compound were also included in the prosecution's raid.