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Ex-Meritz Fire & Marine CEO, execs investigated for insider trading

Published: 25 Sep. 2025, 20:54

Meritz Tower in Gangnam District, southern Seoul [YONHAP]

Prosecutors have launched a compulsory investigation into allegations that a former president of Meritz Fire & Marine Insurance and other company executives profited from insider trading.

The Seoul Southern District Prosecutors’ Office on Thursday announced it was conducting raids to secure evidence related to suspected violations of the Capital Markets Act.

The raids targeted Meritz Financial Group’s offices in Gangnam, southern Seoul, as well as the residences of the individuals implicated. The investigation stems from a July complaint filed by the Financial Services Commission’s (FSC) Securities and Futures Commission, which accused a former Meritz Fire president and executive of insider trading.

The Supreme Prosecutors’ Office referred the case to the Seoul Southern District Prosecutors’ Office on July 28.

The suspects purchased large volumes of shares in November 2022, just before Meritz Financial Holdings announced a plan to merge Meritz Fire and Meritz Securities into wholly owned subsidiaries, according to financial regulators. They allegedly used family accounts to make the trades.

When the merger was disclosed and stock prices surged, they sold their shares and each earned more than 500 million won ($356,760) in profit. The day after the announcement, shares of Meritz Financial, Meritz Fire and Meritz Securities all hit the daily upper price limit.

The accused maintain they had no prior knowledge of the merger plan.

“The individuals named in the complaint have resigned or been relieved of their duties,” Meritz Fire & Marine Insurance said. “We are reexamining our internal controls and strengthening staff training to prevent any recurrence of this issue.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JEONG-JAE [[email protected]]