SNU alumni allegedly shared M&A secrets with relatives, friends over five years; authorities raid 20+ homes, offices
A network of Seoul National University alumni working in finance allegedly used confidential deal information to make more than 20 billion won ($14.7 million) in illicit trading profits, financial authorities said Tuesday.
The suspects, graduates of South Korea’s most prestigious university, allegedly shared information through connections formed at an SNU investment club and a global consulting firm. Investigators say the network extended to relatives and friends, with around 10 people trading on tips over five years.
A joint task force comprising the Financial Services Commission, Financial Supervisory Service and Korea Exchange raided more than 20 homes and offices Tuesday. Authorities also froze brokerage accounts holding suspected proceeds to prevent the funds from being moved or concealed.
At the center of the investigation are believed to be five suspects in their 30s and 40s in senior positions at private equity firms and listed companies, who gained access to sensitive information on tender offers and other mergers and acquisitions.
The core group allegedly shared nonpublic information involving five stocks on at least five occasions. Participants bought shares before deal announcements and sold them after the disclosures pushed prices higher, according to the task force.
Authorities said the alleged scheme involved repeated information-sharing within a close-knit network, with M&A professionals bound by strict confidentiality obligations among the sources.
A task force official said the suspects obtained the information through their M&A work, rather than as insiders at the companies whose shares they traded.
“We will expand our investigations into similar cases,” the official said.
Investigators first flagged suspicious accounts through market surveillance, then traced connections among the trades, stocks and individuals. They combined cases involving the same suspects and examined fund flows, trading records and personal relationships.
The investigation has been underway for about two years, with relevant agencies coordinating their work since May, the task force said.
An earlier case involving an NH Investment & Securities executive helped investigators uncover the wider network.
Authorities searched the executive’s office and other locations in October 2025 over allegations of trading on confidential information obtained while serving as a lead adviser on a tender offer. They filed a complaint against the executive in May.
That case helped investigators establish who had access to deal information and how the individuals were connected. While the executive’s advisory role made the source of access relatively clear, tracing participants in the latest case proved more difficult, an official said.
The Securities and Futures Commission ordered the account freezes under the Capital Markets Act to prevent the disposal of suspected illicit proceeds.
Investigators will examine materials seized in Tuesday’s raids to verify the allegations and statements from those involved.
Authorities said they aim to complete the investigation promptly, refer suspects for prosecution and seek administrative fines of up to twice their illicit gains.
By Choi Yeon-jae (ch0221@heraldcorp.com)
