South Korean alumni network raided over alleged $14.7 million insider trading scheme

South Korean regulators launched a coordinated operation targeting a circle of Seoul National University alumni who worked in finance and allegedly exchanged confidential merger-and-acquisition data for personal gain. The task force, comprising the Financial Services Commission, Financial Supervisory Service and Korea Exchange, searched more than 20 residences and offices, seizing documents and freezing brokerage accounts suspected of holding over 20 billion won in illicit proceeds.

Central figures include five individuals in senior roles at private-equity firms and listed companies, who allegedly passed tips on five stocks across at least five occasions. Trades were executed before public deal announcements and liquidated afterward, boosting share prices. The investigation, ongoing for about two years, builds on a prior case involving an NH Investment & Securities executive that helped map the network’s connections. Officials plan to refer suspects for prosecution and seek fines up to twice the illegal gains.