Financial Authorities "Strengthen Response to New Coronavirus Theme Stocks and Malicious Rumors"

[Asia Economy Reporter Park Jihwan] Financial authorities plan to actively respond to theme stocks related to the novel coronavirus infection (COVID-19) and malicious rumors.

The Financial Services Commission, Financial Supervisory Service, and Korea Exchange announced on the 11th that they will jointly respond to market manipulation activities related to stocks associated with the novel coronavirus. A Financial Services Commission official pointed out, "Despite the difficult times worldwide due to the spread of the novel coronavirus, there is growing concern about unfair trading activities in the capital market that exploit the public's anxiety about this issue."

Intensive crackdowns will target activities such as large-scale high-price purchases to lure prices of stocks mentioned as novel coronavirus theme stocks, excessive fake orders, ultra-short-term price manipulation, and price ceiling consolidation.

Additionally, spreading rumors related to the novel coronavirus without any special basis through internet securities bulletin boards, thereby encouraging purchases as if stock prices will surge, will also be a major surveillance target.

Financial authorities are designating rapidly rising related theme stocks as market alert stocks such as 'Investment Caution,' 'Warning,' and 'Risk,' and are implementing significant preventive measures such as advance notices of refusal to accept orders suspected of unhealthy trading.

The Financial Services Commission advised that investors should refrain from follow-up buying of theme stocks whose prices or trading volumes are rapidly changing. They also reminded that even spreading simple false information or rumors can be considered 'market order disturbance acts' and may result in fines.

This content was produced with the assistance of AI translation services.