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 Prohibiting
Insider Trading |
Insider trading is the practice of buying
and selling a corporation's shares by its
management or board of directors, employees
or majority shareholders (shareholders who own
more than 10% of the outstanding shares),
using their knowledge of material corporate
information unavailable to the public. |
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Insider information is defined as any information that could significantly affect
investment decisious or investors' judgments. |
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An "insider" is defined as a person！board
of directors, officers, employees, majority
shareholders, etc.！Who is in possession of inside information prior to official
disclosure. Its legal definition was recently
broadened to include relatives and others
in a position to capitalize on insider information. |
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The Act defines an insider of a company listed
(or pending listing within six months) on
KRX, as follows: |
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"Corporate insider" may be the corporation
itself, its board of directors, management,
employees
or majority shareholders
， "Quasi insider" : any person who
is in a position to access insider information
through
legal authority or contracts
， "Tippee individual" : any
person who receives insider information from
a corporate insider
or a quasi-insider
， If the majority shareholder or quasi-insider is
a corporation, its management, its employee
or its anget,
such a person is also deemed
as an insider
， If the major shareholder or quasi-insider
is an individual, then his agent or appointee,
or employee
is deemed as an insider |
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