Seoul: Prosecutors on Wednesday raided robot platform company Rainbow Robotics, a subsidiary of Samsung Electronics Co., over allegations of insider stock trading by its executives and employees. The Seoul Southern District Prosecutors Office dispatched investigators to the KOSDAQ-listed company's headquarters in the central city of Daejeon to seize potential evidence related to the suspected insider trading.
According to Yonhap News Agency, the financial market authorities last month requested the prosecution to investigate allegations that 16 individuals, including two senior executives of Rainbow Robotics, gained illicit profits amounting to billions of won. These profits were reportedly obtained by using undisclosed insider information during the process of the company being incorporated as a Samsung Electronics subsidiary.
The individuals involved are suspected of earning between 3 billion won (US$2 million) and 4 billion won through illicit stock trading activities between 2022 and 2024, coinciding with Samsung's acquisition of the largest stake in Rainbow Robotics. It is reported that the prosecution's raid also extended to the homes of Rainbow Robotics executives and Samsung's Suwon compound.