SNU business club alumni caught in alleged insider trading scheme

South Korean financial regulators have announced the discovery of a suspected insider trading scheme involving former members and alumni of a business club at Seoul National University (SNU). According to authorities, the illicit network allegedly shared undisclosed mergers and acquisitions (M&A) information, resulting in illicit gains exceeding 20 billion won ($14.7 million).

The Financial Services Commission, Financial Supervisory Service, and Korea Exchange (KRX) have launched a joint investigation, conducting raids at over 20 locations, including the suspects' homes and workplaces, to gather evidence.

The task force's investigation has been ongoing for approximately two years, with authorities tracing funds, analyzing transactions, and examining suspects' personal connections. The suspects are not believed to have obtained the information as insiders at listed companies. Instead, they allegedly acquired it through undisclosed means.

The network allegedly involved more than five financial industry professionals who had attended SNU and later worked at various asset management firms, private equity firms, and listed companies.