Samsung Office Searched, Acquisition of Rainbow Robotics Spotlighted by Prosecutor

JAKARTA - South Korean prosecutors raided Samsung Electronics' headquarters in Suwon in connection with an alleged insider trading in the acquisition of Rainbow Robotics, a robotics company that is now a Samsung subsidiary.

Yonhap quoted Thursday, June 11, reported that the search and seizure was carried out by investigators from the Seoul Southern District Prosecutor's Office on Thursday. This case is related to the alleged use of internal information when Samsung bought shares of Rainbow Robotics in 2022 to 2024.

Financial authorities have handed over 16 people to the prosecutor's office for alleged violations of the Capital Market Law. They include the leadership of Rainbow Robotics and the company's financial director.

The suspects are said to have reaped abnormal profits of around 3 billion to 4 billion won, or around 2.6 million US dollars, by taking advantage of insider information.

Insider trading is a stock transaction carried out using important information that is not yet public. This practice is prohibited because it gives unfair advantages to certain parties.

Rainbow Robotics is a local South Korean industrial robot manufacturer. The company is currently a subsidiary of Samsung Electronics.

According to Yonhap, prosecutors had previously searched Rainbow Robotics' headquarters in Daejeon, about 160 kilometers south of Seoul, in March.