June 11 (Reuters) – The head of JPMorgan Chase’s South Korean unit, Steve Lim, is being investigated by local authorities probing insider trading allegations, an official at the Financial Supervisory Service (FSS) said on Friday.
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“We probed JPMorgan and its chief over unfair trading and referred the issue to prosecutors,” the official told Reuters, asking not to be named as he was not authorised to speak to the media.
Ernst Lee, spokesman for the Financial Services Commission (FSC), said Lim was under investigation for suspicious transactions conducted last year. “We have not been informed of the result,” he said.
Lim, one of the longest serving chiefs of a foreign bank operating in South Korea, was quizzed by prosecutors this week over allegations of unfair trading involving two to three firms including building materials firm KCC Corp (002380.KS), the Money Today newspaper reported earlier.
Money Today quoted Lim as denying all allegations, saying he was not investigated by prosecutors. He noted one of his relatives was investigated over KCC stock trading.
JPMorgan declined comment. (Reporting by Miyoung Kim and Kim Yeon-hee in SEOUL and Daniel Stanton at IFR in SINGAPORE, Editing by Ian Geoghegan)