Global expansion of Japanese firms brings offshore insider trading risks

Cases at Line, Zozo's overseas subsidiaries exposes lax information control

20250219 Insider trading

Japan's financial regulations adhere to the principle of territoriality, meaning that any violations occurring within Japan's jurisdiction are subject to domestic law.

JUMPEI MATSUDA

TOKYO -- As Japanese firms expand their global reach, insider trading at their overseas subsidiaries is emerging as a major threat to market integrity.

Scandals at Line (now Line Yahoo), and Zozo highlight critical lapses in compliance, exposing how confidential information is being exploited abroad. They raise concerns about inadequate employee training and lax information controls.

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