I have a question about a financial law violation.. it's about stocks.

Hello, you asked whether your conduct constitutes a financial law violation. The financial specialist attorney will respond.

Yes, the conduct you described may constitute "use of undisclosed material information" prohibited by Article 174 of the Financial Investment Services and Capital Markets Act (Capital Markets Act), i.e., insider trading, and is subject to criminal punishment for financial law violation.

According to the relevant law, a person who has come to know undisclosed material information related to a listed company through their work, etc., and uses such information to trade the company's stocks under their own name or another's name is in principle prohibited.

Information on corporate combinations such as mergers constitutes "material information" that significantly affects stock prices, and trading using such information before public disclosure may be regarded as financial law violation insider trading.

In particular, even if stocks were purchased under the name of family members or acquaintances, not just yourself, if there was conduct of providing information or inducing trading, you may be judged as an accomplice.

Insider trading can result in heavy punishment such as imprisonment of 1 year or more, or a fine of 4 to 6 times the unjust gain.

Investigation and sanctions may also be imposed by the Financial Services Commission.

In the current situation, it appears important to consult with a financial specialist attorney well-versed in the Capital Markets Act, to analyze the circumstances of obtaining the information, the trading circumstances, and the size of unjust gain, and to prepare a defense strategy for financial law violation.