Prosecution Raids Samsung Electronics Headquarters Over Alleged Insider Trading in Rainbow Robotics Acquisition
Current and Former Executives and Samsung Employees Implicated
Suspected Unfair Profits Estimated at 3 to 4 Billion Won
The prosecution has launched a compulsory investigation, including a raid on Samsung Electronics’ headquarters, regarding allegations of insider trading during Samsung Electronics’ acquisition of shares in Rainbow Robotics.
According to the legal community on June 11, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors’ Office (headed by Senior Prosecutor Shin Donghwan) conducted a search and seizure of Samsung Electronics’ headquarters in Suwon, Gyeonggi Province the previous day.
The investigation gained momentum after the Securities and Futures Commission of the Financial Services Commission detected signs of insider trading by Rainbow Robotics officials and referred the case to the prosecution. The Securities and Futures Commission suspects that the current CEO and former Chief Financial Officer (CFO) of Rainbow Robotics used non-public information related to Samsung Electronics’ investment plans to gain unfair profits.
The Securities and Futures Commission also reportedly confirmed that an employee, referred to as “A,” from Samsung Electronics’ planning team was in a position to access information regarding the acquisition of Rainbow Robotics shares in advance, and that this employee either directly purchased shares using this information or passed the information to family members, enabling them to profit.
The prosecution is focusing on the possibility that Employee A leaked undisclosed information related to the acquisition to external parties. Based on the materials obtained through the search and seizure, the prosecution plans to closely examine whether officials from Samsung Electronics and Rainbow Robotics engaged in stock trading using non-public, material information during the share investment and acquisition process, and whether they gained unfair profits amounting to several billion won in the process. The amount of unfair profit identified so far is reported to be between 3 billion and 4 billion won.
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Since 2022, Samsung Electronics has gradually acquired shares in Rainbow Robotics, and earlier this year, it became the largest shareholder and incorporated the company as a subsidiary through the exercise of call options and other measures. After analyzing the seized materials, the prosecution plans to sequentially summon officials from Samsung Electronics and Rainbow Robotics to investigate the circumstances of information transmission and the details of stock trading.
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