SESC - Securities and Exchange Surveillance Commission

01/17/2025 | Press release | Distributed by Public on 01/17/2025 00:34

Recommendation for Administrative Monetary Penalty Payment Order for Insider Trading in Shares of Demae-can Co., Ltd. by an Individual Residing Abroad (January 17,2025)

Japanese version
January 17, 2025
Securities and Exchange Surveillance Commission

Recommendation for Administrative Monetary Penalty Payment Order for Insider Trading in Shares of Demae-can Co., Ltd. by an Individual Residing Abroad

1. Contents of the Recommendation

The Securities and Exchange Surveillance Commissiontoday made a recommendation to the Prime Minister and the Commissioner of the Financial Services Agency that an administrative monetary penalty payment order be issued in regard to insider trading in the stockof Demae-can Co., Ltd. by an individual residing abroad pursuant to Article 20(1) of the Act for Establishment of the Financial Services Agency. This recommendation is based on the findings of aninvestigation into a suspected instance of insider trading, whereby the following violation of laws and ordinances was identified.

2. Summary of the Findings Regarding Violations of Laws and Ordinances

The individual residing in Korea subject to the administrative monetary payment order was informed by an employeeworking for LINE Corporation ("LINE"), which is currently reorganized as LY Corporation, of material nonpublic information about an offeringof new shares ofDemae-canCo., Ltd. ("Demae-can") that its decision-making body haddecided to make, which the employee of LINE learned of duringthe course of their duties to negotiate entering into ashare subscription agreement with Demae-can.


　Then, the individual purchaseda total of 16,600sharesof Demae-can worth 11,086,300yen witharelative's brokerage account for their benefit during the period from March 11, 2020 to around9:50 a.m.of March 26, 2020, ahead ofthe disclosure ofthe offeringreleased at 4:53 p.m. on March 26, 2020.

Asummaryof the findings isshown in the Chart.

The individual's aforesaidactionwas found to constitute"conduct[ing] Sales and Purchase, etc. set forth in Article 166(1) in violation of the provisions of Article 166(3)" as stipulated under Article 175(1) and 175(10) of the Financial Instruments and Exchange Act ("FIEA").

3. Calculation of the Amount of the Administrative Monetary Penalty

Pursuant tothe FIEA, the amount of the administrative monetary penalty applicable to the above violation is 14,640,000 yen.

Details of thecalculation areshown in the Attachment.

4. Acknowledgements

We appreciate the assistanceof the Hong Kong Securities and Futures Commission, theFinancial Services Commission/Financial Supervisory Service ofKorea,the Monetary Authority of Singapore,the Securities and Exchange Commissionof Thailand, the United States Securities and Exchange Commission, and the Japan Exchange Regulation inthis matter.
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