Under the Act, using non-public material
information for the trading of securities
listed on the KSE or the KOSDAQ is strictly
prohibited.
Definition
of Insider
The Act defines "insider information"
as any information that could significantly
affect the investment decisions or evaluations
by investors.
To prevent such action, insiders may only
buy or sell their securities after a waiting
period has elapsed. The length of such a waiting
period depends on the origin of the information
and how the information is publicized:
กค
Information included in a report filed with
FSC, KSDA or KSE: one day
กค Information reported by a national newspaper:
one day
กค Information announced on the radio: twelve
hours
กค Information disclosed through KSDA or KSE:
one day
Sanctions
If an insider buys or sells securities in
violation of the above rules, then such an
individual may face imprisonment for up to
10 years for each insider trading infraction
and fined up to 20 million won.
If the amount of profit or loss exceeds 20
million won, the sanction can be up to triple
the trading gain or loss.
Liability
for Indemnity
An inside trader must indemnify any party
that takes a loss as a result of trading the
securities concerned at the time of infraction.
The request period for indemnity is one year
from the day when the party concerned is made
aware of the infraction and three years from
the day the infraction occurred.
Prohibiting
Insider Trading 
Under the Act, using non-public material
information for the trading of securities
listed on the KSE or the KOSDAQ is strictly
prohibited. 
