Bloomberg News

Japanese Ministry Official Arrested for Elpida Insider Trading

January 12, 2012

Jan. 12 (Bloomberg) -- A Japanese trade ministry official was arrested for suspected insider trading on companies including Elpida Memory Inc., the government said.

Masaaki Kimura, 53, allegedly took advantage of his position in 2009 and traded on Elpida and NEC Electronics Corp., the Tokyo-based ministry said in a statement today. NEC Electronics merged with Renesas Technology Corp. to form Renesas Electronics Corp. in 2010.

Kimura was deputy director-general of the ministry’s commerce and information policy bureau when chipmaker Elpida received 30 billion yen from the state-run Development Bank of Japan Inc. The company also received 100 billion yen from lenders to help pay for restructuring.

“It’s unacceptable” if the allegation is true, Trade Minister Yukio Edano said in a separate statement. He told ministry employees to refrain from trading securities “for a while.”

The ministry also will ask employees to register brokerage accounts used by them or their spouses with the ministry, according to the statement.

Elpida and Renesas declined to comment.

Elpida shares declined 1.6 percent to 308 yen in Tokyo trading, and Elpida fell 0.7 percent to 445 yen. The benchmark Nikkei 225 Stock Average dropped 0.7 percent.

--With assistance from Takehiko Kumakura in Tokyo. Editors: Takehiko Kumakura, Michael Tighe

To contact the reporters on this story: Naoko Fujimura in Tokyo at nfujimura@bloomberg.net; Takashi Amano in Tokyo at tamano6@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net


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