Stock Purchase Using 'Netflix Partnership' Information... Former SBS Employee and Others Fined 1.1 Billion Won

The financial authorities have imposed a fine of nearly 1.1 billion won on a former SBS employee and others who made improper gains of around 800 million won after obtaining advance information about a partnership with Netflix.

The Securities and Futures Commission (SFC) of the Financial Services Commission convened a regular meeting on June 10 and resolved to impose fines totaling approximately 1.08 billion won on those who committed unfair trading practices in the capital market by violating the prohibition on the use of undisclosed material information.

Mr. A, who previously worked as a public disclosure officer in the finance team at SBS, is accused of acquiring undisclosed key information that SBS would enter a strategic partnership with Netflix regarding content supply, and then purchasing shares between October and December 2024 to profit from the price difference. His father, Mr. B, also received this information and was found to have bought shares before the public announcement.

The illicit gains obtained by Mr. A in this process amounted to approximately 850 million won. The SFC decided to impose a fine of 1.04 billion won on Mr. A, exceeding the amount of his illicit gains. Mr. B, whose improper gain was about 20 million won, was fined 39.4 million won, nearly twice the amount. The SFC explained, "Although fines can be waived when the improper gain is less than 20 million won, we imposed the statutory maximum rate in this case."

This measure marks the second application of the capital market unfair trading penalty system introduced in January 2024. Of the total improper gains obtained, 510 million won in short-swing profits have already been returned. The SFC noted that this fine was imposed prior to any criminal punishment, and that additional penalties such as imprisonment or a criminal fine may follow depending on the outcome of future criminal proceedings.

This content was produced with the assistance of AI translation services.