The Seoul Southern District Court has handed down prison sentences to employees of the law firm 'Gilong' for violating capital market laws by trading stocks based on confidential information unlawfully acquired from lawyers' emails. The main offenders, identified as Mr. Ka and Mr. Nam, received prison sentences of three and a half years and three years, respectively, along with hefty fines due to their involvement in substantial financial gains from insider trading. The court emphasized the detrimental impact of their actions on the integrity and trust of the capital market, highlighting significant public outrage against their misconduct.

According to the prosecution, Mr. Ka and Mr. Nam accessed the email accounts of over ten lawyers in the corporate advisory team from August 2022 to June 2024 without authorization. They exploited this insider information related to stock public offerings and capital increases for personal profit, amassing illicit gains amounting to about 1.8 billion won and 500 million won, respectively. The court also sentenced three other co-defendants, who worked indirectly with the main offenders, to shorter prison terms and probation for their roles in this scheme.

The case highlights serious lapses within the internal controls of law firms and raises concerns regarding the protection of confidential information in the legal industry. The involvement of employees from an investment consulting firm under the MBK Partners, Mr. Ko and his associates, further exemplifies the wide-ranging implications of insider trading and the need for stricter regulatory measures to protect market integrity. As investigations continue, there will likely be increased scrutiny on compliance practices within financial and legal services.