South Korean broadcaster SBS employee fined $750,000 for insider trading on Netflix deal

A South Korean broadcast employee has been fined 1.04 billion won ($750,000 USD) for illegally profiting around 800 million won ($570,000 USD) by trading company stock based on insider information. The employee, who worked as a disclosure 담당자 (person in charge of disclosures) in SBS's finance team, allegedly used non-public information about a strategic partnership with Netflix to purchase company shares.

The Securities and Futures Commission (SFC) revealed that the employee bought SBS shares between October and December 2024, knowing the company was finalizing a content supply deal with Netflix. After the partnership was officially announced on December 20, 2024, SBS stock surged, hitting the daily limit for two consecutive days. The employee then sold the shares, realizing a substantial illegal profit. His father, who also received the information, was fined 39.4 million won for profiting about 20 million won.

The SFC decided to impose the fine before the criminal proceedings concluded, citing the severity and urgency of the case. The employee had already been reported to the prosecution in January. Depending on the outcome of the criminal investigation, he could face imprisonment for over a year or additional fines equivalent to three to five times the illicit gains, potentially reaching up to 4.2 billion won. The SFC stressed its resolve to pursue and recover all illegal profits, sending a strong message that "stock manipulation leads to ruin."

“

This case involves a significant violation where the fine exceeds 1 billion won. We will track down and recover illegal profits from unfair trading to send a message to the market that 'stock manipulation leads to ruin.'