Insider suspicion again at IR Japan: Governance dysfunction in a workplace where undisclosed information is gathered
On May 22, 2025, the Securities and Exchange Surveillance Commission conducted a compulsory investigation into the head office of IR Japan (Chiyoda-ku, Tokyo), which provides support for shareholder relations, on suspicion of violating the Financial Instruments and Exchange Act (insider trading). In 2023, the company also found a vice president of its parent company guilty of insider trading. (Photo: IR Japan Office)
The target of the investigation was a suspicion that an employee of the company leaked undisclosed information of a client company to an acquaintance and traded stocks based on that information. The Securities Surveillance Commission is investigating the facts, with a view to filing a complaint with the Tokyo District Public Prosecutor's Special Investigation Department.
On the evening of the same day, IR Japan Holdings, the parent company, issued a statement saying, "It is true that employees of the subsidiary are being investigated by the Securities and Exchange Surveillance Commission, and the Group will fully cooperate with the investigation."
In 2023, Takuji Kurio, former vice president of IR Japan Holdings, the parent company, was sentenced to one year and six months in prison and three years of probation by the Tokyo District Court for violating the Financial Instruments and Exchange Act for leaking undisclosed information about the downward revision of the company's earnings to two female acquaintances (also known as "mistresses" in the Bunshun report) and recommending the sale of shares.
At the time, IR Japan's president, Yuichiro Kitamura, told the media, "Our system has not been able to keep up with the rapid expansion of our business, and this was a good opportunity to bring out our business." Just two years later, the insider trading allegations that have resurfaced revealed that Kitamura's commitment to "strengthening the governance system" was superficial.
As a company responsible for the information management of listed companies, IR Japan is subject to strict internal discipline and thorough governance systems, and as long as it conducts business, even a single case of fraud cannot be tolerated.
On the other hand, if the management system frays, it may become a "hotbed where insiders can run rampant" among those involved in the company due to the structure of accumulating undisclosed information within the company.
