Samsung’s Seoul office raided in insider trading probe tied to Rainbow Robotics

South Korean prosecutors raided Samsung Electronics’ headquarters as part of an insider trading investigation connected to the tech giant’s multimillion-dollar acquisition of Rainbow Robotics, a KOSDAQ-listed robotics company founded by researchers from the Korea Advanced Institute of Science and Technology.

The Seoul Southern District Prosecutors’ Office executed the raids on March 18, 2026, targeting both Samsung’s facilities in Suwon and Rainbow Robotics’ headquarters in Daejeon. The probe centers on 16 individuals, including Rainbow Robotics’ current CEO, identified as Lee, and the company’s former CFO, identified as Bang.

What prosecutors are alleging

The investigation focuses on trades of Rainbow Robotics shares made between 2022 and 2024, a period during which Samsung was steadily building its position in the company. Prosecutors allege the suspects used non-public information about the acquisition to trade Rainbow Robotics stock before details became public.

The illicit profits from these trades are estimated at 3 to 4 billion won, roughly $2 million to $2.8 million.

The case was referred to prosecutors by South Korea’s Securities and Futures Commission in early 2026. As of late May 2026, the investigation remains active with no formal charges confirmed against any of the individuals involved.

Samsung’s path to controlling Rainbow Robotics

Samsung first invested in Rainbow Robotics in 2023, picking up an initial stake of approximately 10% to 14.7%.

In December 2024, Samsung dramatically escalated its commitment, increasing its holding to 35% for about 267 billion won, which works out to roughly $181 million. That purchase made Samsung the largest shareholder in Rainbow Robotics.

Rainbow Robotics, founded in 2011 by KAIST researchers, trades on South Korea’s KOSDAQ exchange under ticker 277810.KQ. The company has seen impressive revenue growth in recent years, buoyed in part by a broader wave of factory automation investment from both Samsung and LG.

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