The CEO of Osstem Implant allegedly made approximately 150 million won (US$111,431) in short-term trading profits by utilizing important undisclosed information before the company’s delisting.
According to Osstem Implant’s business report for last year released on March 22, the company was informed of CEO Um Tae-kwan’s short-term trading profit of approximately 150 million won in November of last year.
On March 13, the Securities and Futures Commission under the Financial Services Commission decided to report CEO Um to the prosecution on charges of using important undisclosed information.
According to the Financial Supervisory Service, CEO Um received positive information about a surge in operating profit and a turnaround to net profit in advance while receiving internal reports from the accounting department. He then purchased company stocks using undisclosed accounts under the names of his spouse and acquaintances.
Furthermore, he utilized undisclosed accounts for several years to trade company stocks in order to circumvent insider trading regulations and failed to fulfill the obligation of reporting changes in ownership of shares.
Um, who has been with Osstem Implant for 23 years, has been leading the company for seven years since being appointed as CEO in 2017.
Meanwhile, Osstem Implant, which was involved in controversy due to an employee’s embezzlement exceeding 200 billion won in 2022, finds itself once again in hot water with the revelation of CEO Um’s unethical pursuit of personal gain.