Chemical firm chairman 'facing insider trading investigation'

15 July 2009

The chairman of South Korean chemical manufacturer OCI Co is being investigated by authorities in the country over allegations of insider trading, it has been claimed.

According to a report in the country's Maeil Business Newspaper, Lee Soo-young's actions are being examined after he supposedly bought a large amount of shares in the company prior to the announcement of lucrative deals in foreign markets.

Shares in OCI fell by as much as 13 per cent following the news, however, according to the Korea Herald, the firm issued a statement the company stated that the allegation is untrue.

"Chairman Lee has never been investigated by the Financial Supervisory Service for trading of OCI shares," the company told Bloomberg in a statement, adding that he is not the subject of a probe by the authorities.

Elsewhere in Asia, a former investment banker and ex-fund manager recently pleaded guilty to carrying out insider trading in Hong Kong.

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