Samsung Executives Investigated for Insider Trading

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LAS VEGAS, NV - JANUARY 06: Samsung Electronics Vice President Nandra Ramachandran is silhouetted against a video presentation as he speaks during a press event at the Mandalay Bay Convention Center for the 2014 International CES on January 6, 2014 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 7-10 and is expected to feature 3,200 exhibitors showing off their latest products and services to about 150,000 attendees. (Photo by Justin Sullivan/Getty Images)
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South Korean regulators are investigating several executives at Samsung for insider trading, according to a report Friday in the Wall Street Journal.

Regulators detected unusual trading patterns, prompting South Korea’s Financial Services Commission to launch a probe, an unnamed official told the newspaper. According to the report, “Nine Samsung executives from various Samsung affiliates are suspected of having bought Cheil Industries shares worth 40 billion-50 billion Korean won ($35 million-$43 million) during the months of April and May.”

The official declined to give more information on who the executives are, and the company declined to comment when the Journal asked for comment.

The investigation stems from trading activity around the time of a merger between Samsung’s holding company Cheil Industries and Samsung C&T Corp, which caused shares in Cheil Industries to rise in value.