SBS Raided: Insider Trading Scandal Rocks Major TV Station

The Financial Services Commission (FSC) conducted a raid on Tuesday at SBS, a major TV station in South Korea, following allegations of insider trading by some of its officials. The officials are accused of using confidential information about a partnership with Netflix for personal gain.

According to government sources, the FSC’s Capital Market Investigation Division carried out the operation while interrogating an SBS official suspected of insider trading.

The official in question allegedly purchased SBS shares after learning about the company’s upcoming strategic partnership with Netflix. Once the deal was made public, the shares were sold, resulting in substantial profits.

It is estimated that the official reaped hundreds of millions of won (equivalent to hundreds of thousands of USD) in illegal gains through these transactions.

In December 2023, SBS entered into an agreement with Netflix to provide its content, including dramas, variety shows, and news programs, to the global streaming giant. The announcement of this deal caused SBS shares to hit their daily upper limit for two consecutive trading sessions.

The FSC has expanded its investigation to include other SBS officials who may have engaged in similar illicit activities.

Earlier on Tuesday, SBS released a statement confirming that it had terminated the employment of the official implicated in the insider trading scheme after being notified by the FSC.

\”We have dismissed the official and will fully cooperate with the FSC’s investigation,\” the company stated. \”Moving forward, we are committed to improving our internal management systems and strengthening compliance training to prevent such incidents from occurring in the future.\” (Yonhap)