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Samsung execs under investigation for insider trading

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By Tony Connelly, Sports Marketing Reporter

December 5, 2015 | 2 min read

Samsung executives are being investigated on suspicion of insider trading after the Financial Services Commission (FSC) became aware of dubious trading activity shortly before the sale of the company's overseas sales division.

Samsung execs insider trading

Samsung execs insider trading

The South Korean exchange's monitoring team reported nine Samsung executives to the FSC after it emerged that they had bought shares worth $35m-43m in South Korean textile firm Cheil Industries during April and May.

The sale has since been viewed as suspicious because it occurred just four months before Cheil Industries took over Samsung C&T Corp, a division of the electronics company which handles the overseas sales.

A spokeswoman for Samsung Group told the WSJ: “We understand the investigation involving certain individuals is still in its early stage,” and would wait for a conclusion before commenting further.

When news of the planned merger was announced in May Cheil Industires' shares soared as many buyers were keen to invest in the company which would control an array of key Samsung affiliates.

Earlier this week Samsung appointed Dongjin Koh as its new chief executive for its mobile division. Koh will be tasked with turning around Samsung's mobile profits which have been in decline for years despite its Galaxy flagship phones being well received critically.

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