FTC probes Mirae Asset over insider trading allegations

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FTC probes Mirae Asset over insider trading allegations

Korea’s corporate watchdog is looking into whether Mirae Asset Group, a major financial service provider, is violating regulations over inside transactions among its affiliates, industry sources said Friday.

The current law forbids inter-affiliate trading within a business group where the controlling family holds more than 30 percent of the shares in an affiliate. Such trading is blamed for allowing owner families to easily net large profits by having subsidiaries award lucrative contracts to each other, undermining the principle of fair competition.

The probe launched by the FTC caused the country’s finance regulator to suspend its own review of corporate lending practices at Mirae Asset Daewoo Securities, the brokerage arm of the group.

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