[비즈한국] The Joint Response Team for Eradicating Stock Manipulation announced on the 28th that it had conducted a search and seizure at NH Investment & Securities005940. The joint team is an organization that combines the investigation and analysis functions previously dispersed among the Financial Services Commission (FSC), the Financial Supervisory Service (FSS), and the Korea Exchange. An executive at NH Investment & Securities, identified as 'A', is suspected of reaping unfair profits by using non-public information. NH Investment & Securities was previously raided by the Financial Services Commission in July over similar allegations. The securities industry predicts that repeated investigations by financial authorities will have a negative impact on the credibility of NH Investment & Securities.
According to the FSC, executive A repeatedly leaked information related to tender offers to acquaintances over the past two years for 11 stocks for which NH Investment & Securities acted as the lead manager. Those who received the information purchased the stocks before the tender offers were announced to the market and sold them all after the announcement when stock prices rose, illicitly gaining approximately 2 billion won in profit.
According to the FSC's trading analysis and fund tracking, large-scale financial transactions appearing to be stock purchase funds were frequently found between A and these acquaintances before and after the tender offer announcements, and circumstances suggesting they shared the illicit profits were also captured. Furthermore, it was discovered that the individuals suspected of trading based on the leaked information used multiple borrowed-name securities accounts belonging to relatives and others, frequently changing the accounts to conduct trades. This is why the suspects are suspected of attempting to evade the surveillance nets of securities firms and financial authorities.
Although the allegations against A have not yet been confirmed, the securities industry expects this raid to affect the credibility of NH Investment & Securities. Separately from this case, the FSC previously raided the firm in July regarding another employee suspected of using non-public information. Similar allegations have occurred consecutively within NH Investment & Securities.
In his New Year’s address this January, NH Investment & Securities CEO Yoon Byung-woon emphasized, "We must strictly adhere to internal control standards, regulations, principles, and health management," adding, "While we will reduce elements that excessively hinder business, we must strictly observe regulations for the protection of customers and employees." Ultimately, this represents a failure of internal control.
Future performance may also be affected. NH Investment & Securities holds a dominant position as a lead manager for tender offers. From 2023 to the first half of 2025, it managed 28 out of a total of 55 cases, more than half. However, if the allegations of using non-public information are proven true, the firm's credibility could decline, and it may become difficult to maintain its current dominant position. Moreover, the fact that the target of this search and seizure is an executive, rather than a general employee, could have an even greater impact.
CEO Yoon Byung-woon appears to be actively trying to manage the situation. An NH Investment & Securities official stated, "We are taking the gravity of this matter very seriously," and added, "The CEO (Yoon Byung-woon) ordered executive A, who is currently on an overseas business trip, to return immediately to actively cooperate with the investigation and provide a detailed explanation." The official added, "The company also plans to do its utmost to thoroughly verify the facts and will take appropriate follow-up measures based on the final investigation results."
CEO Yoon Byung-woon's term ends in March of next year, and discussions regarding the appointment of the next CEO of NH Investment & Securities are expected to begin soon. Given his decent performance, there had been consistent talk of his potential reappointment. Some suggest that this raid could weaken the momentum behind these rumors of his reappointment.