MW Samsung, one of the world's hottest stocks, is hit by insider-trading probe
By Jules Rimmer
Samsung Electronics officers were raided Thursday in an illegal trading probe
Samsung Electronics (KR:005930), one of the world's best-performing stocks this year, is reportedly the target of an insider-trading probe.
The shares have surged 149%, and that's after a 20% fall from its highs, amid the bonanza for memory chip makers.
Representatives from the Seoul Southern District Prosecutor's Office attended Samsung's headquarters in Suwon while probing trades between 2022 and 2024 associated with its acquisition of Rainbow Robotics, according to Yonhap, the local news agency. Authorities have listed 16 people suspected of illegal trading activity and violations of the Capital Markets Act, including Rainbow Robotics' head and CFO.
The allegations suggest around KRW 3 billion to 4 billion (about $2.6 million) in unfair profits were generated.
The investigation gained momentum after the Securities and Futures Commission of the Financial Services Commission detected signs of insider trading by Rainbow Robotics officials and referred the case to the prosecution, the report said. Both Samsung Electronics and the Korean regulator were contacted for comment.
Concerns have been mounting about extreme leverage amid the speculative frenzy that has surrounded the Korean equity market over the last year or so. The trades being investigated, however, do not appear to be part of the recent rally and appear to be focused at the acquired firm.
Samsung Electronics shares closed down 1% at 299,000 in Seoul. In Thursday trade on the London stock exchange its GDRs were up 1.7% at $4996, implying a local price of KRW 305,000
-Jules Rimmer
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June 11, 2026 09:10 ET (13:10 GMT)
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