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financial regulator-broadcaster
Financial regulator raids SBS over suspected insider trading linked to Netflix deal
SEOUL, July 15 (Yonhap) -- The Financial Services Commission (FSC) on Tuesday raided the major TV station SBS over allegations that some of its officials engaged in illegal insider trading using undisclosed information about a partnership with Netflix, government sources said.
The FSC's Capital Market Investigation Division carried out the raid while questioning an SBS official on charges of insider trading, according to the sources.
The official is suspected of purchasing SBS shares upon learning of the company's planned strategic partnership with Netflix and selling them after the deal was made public.
He is believed to have earned hundreds of millions of won in illegal profits through the trades.
In December last year, SBS signed a deal with Netflix to provide its content, ranging from dramas and variety shows to news shows, to the global streaming platform. Following the announcement, SBS shares hit the daily upper limit for two consecutive sessions.
The FSC is also investigating other SBS officials on similar charges.
Earlier in the day, SBS said it had dismissed the official after being notified by the FSC.
"We have dismissed the official and will fully support the FSC's investigation," the company said in a statement. "We will improve our internal management system and strengthen compliance training to prevent similar incidents in the future."
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