[Background]
The use of undisclosed information obtained through one’s position, or engaging in unfair trading practices related to one’s duties, by employees and executives of financial companies can disrupt the order of capital market transactions and, in turn, significantly impact the overall trading order of the financial market and the trust of financial consumers.
To address this issue, the aim is to establish a provision where the use of undisclosed information obtained through one's position, or engaging in unfair trading practices related to one’s duties, will be considered as a reason to increase the restriction period (period extension reason) when calculating the restriction period for trading financial investment products and the appointment of executives of listed companies and financial institutions.
[Regulatory Content]
In cases where employees and executives of financial companies engage in unfair trading practices related to their duties, such as using undisclosed information, the restriction period (up to 5 years) for trading financial investment products and appointing executives of listed companies and financial institutions will be set to be extended as an increase reason (period extension reason).