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 Insider Trading Regulations
of the Act prohibit insiders from short-swing
trading and short-selling on KRX.
Short-swing
trading
The Act grants an issuer the right to recover
any profit made by an officer, director or
"10-percent shareholder" if the profits
were made from the trading of corporate shares.
This rule also applies to warrants or bonds
of a corporation listed on KRX.
Whether the insider possessed any material,
non-public information at the time of buying
or selling is irrelevant.
The insider will be liable when buying and selling
within a six-month period after profits were
first made.
Short-selling
Insiders of a corporation listed on KRX are prohibited from borrowing
or lending shares, warrants or bonds for
the purpose of short-selling. An individual making such an infraction may face
imprisonment for up to two years or a fine up to 10 million won.
Insider
Trading Regulation 
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 Insider Trading Regulations
of the Act prohibit insiders from short-swing
trading and short-selling on KRX.
