At the National Assembly Public Administration and Security Committee audit on the 20th, Financial Services Commission Chairman Lee Eo-gwon commented on the past stock trading allegations involving Special Prosecutor Min Joong-ki. He stated, “I am aware that the case has been reported to the prosecution and is currently under investigation,” and emphasized that “unfair trading practices will be dealt with strictly, regardless of rank or status.”
During the session, Committee Chairman Yoon Han-hong questioned Chairman Lee, asking, “Would trading stocks using undisclosed company information constitute stock manipulation?” This was in reference to allegations surrounding Special Prosecutor Min’s past stock trading using undisclosed information.
Chairman Lee responded affirmatively, “Of course,” to which Chairman Yoon cited media reports alleging that, during his time as a judge, Min used insider information to sell stocks with a high school and college peer, a major shareholder of Neosemitech, earning a 30-fold profit. Yoon highlighted that the company was delisted on September 20, 2010, resulting in losses for over 7,000 small investors amounting to 400 billion won.
Chairman Yoon further stated, “Special Prosecutor Min sold all his shares just before delisting, garnering a profit exceeding 130 million won. If societal leaders conduct themselves in this manner using insider information, they should serve as cautionary examples of ‘public disgrace.’” He insisted, “Investigations should not be undermined by the statute of limitations and financial authorities should disclose the findings to the public, even if the statute of limitations has expired.”
In response, Chairman Lee noted, “I understand the matter is under investigation by the prosecution, and we are cooperating with the Exchange and the Financial Supervisory Service by providing relevant materials.” When Chairman Yoon pressed to continue the investigation regardless of the statute of limitations, Chairman Lee assured, “We will strive to efficiently coordinate the roles among institutions to do our utmost.”
Previously, Oh Mo, a former representative of Neosemitech, was sentenced to 11 years in prison in 2016 for selling approximately 220,000 shares (worth 2.4 billion won) through a nominee account after being aware of fraudulent accounting within the company in 2010. The court rejected his defense that the account belonged to an investor, stating he disposed of stock using undisclosed information before delisting. In the same period, it was noted that Special Prosecutor Min also sold all 12,000 shares he held, reaping a profit exceeding 100 million won.