The Financial Supervisory Service took severe disciplinary action against an employee of Hana Securities who violated trading restrictions on financial investment products by trading stocks under his wife's name.
According to the 14-member FSS disciplinary announcement, the FSS decided to impose a three-month salary reduction and a fine of 1 million won on Director A of Hana Securities.
A was caught violating trading restrictions for employees of financial investment firms. The restrictions require employees of financial investment firms to report their stock trading accounts to their company when trading stocks in their own accounts and to notify the company of transaction details monthly or quarterly. This is to prevent unfair trading practices using undisclosed information by employees of financial investment firms and to mitigate conflicts of interest with investors.
A violated these regulations by conducting 115 transactions of stocks under his spouse's name. From 2018 to 2020, he invested an amount equivalent to 174 million won. The total number of transactions amounted to 41.
The FSS reported that A used his wife's name to engage in illegal transactions using information obtained in the course of his duties, leading to severe disciplinary action. Disciplinary actions taken by the FSS against employees include dismissal, suspension, demotion, censure, and warnings. Actions resulting in a demotion or higher are classified as severe disciplinary measures that restrict the appointment of executives in financial investment companies.