Financial Authorities to Closely Monitor 69 COVID-19 Themed Stocks

[Asia Economy Reporter Park Jihwan] Financial authorities are intensifying monitoring of stocks themed around the novel coronavirus disease (COVID-19). A total of 69 items, including masks, diagnostic devices, vaccines, and sanitizers, are targeted.

The Financial Services Commission, Financial Supervisory Service, and Korea Exchange announced on the 10th, "Recently, buying momentum has flowed mainly into so-called COVID-19 themed stocks, causing sharp price fluctuations and increased volatility," adding, "We will significantly strengthen monitoring of COVID-19 themed stocks." This is because companies unrelated to the spread of COVID-19 are being highlighted as COVID-19 themed stocks, and indiscriminate follow-up trading may increase the risk of investor damage.

In fact, the average stock price increase rate of 68 COVID-19 themed stocks over the past two months is 42.1%, far exceeding the KOSPI (-20.1%) and KOSDAQ indices (-12.5%).

Financial authorities are intensively cracking down on the dissemination of false information and rumors through stock bulletin boards, SNS, and text messages. They are also sharing stock purchase recommendation spam data with the Korea Internet & Security Agency (KISA).

Since the COVID-19 issue emerged, financial authorities have issued market alerts such as "investment caution, warning, and risk" 146 times for 54 of the 69 themed stocks. Twelve investor accounts (covering 10 stocks) that submitted unhealthy orders have been subject to refusal of acceptance measures, and 22 accounts (covering 17 stocks) have been given preliminary refusal of acceptance warnings. Two stocks suspected of unfair trading are undergoing review procedures, and if the allegations are confirmed, a full investigation will proceed.

Financial authorities stated, "Regarding COVID-19 responses, we will focus on inspecting acts with a high likelihood of unfair trading, such as disposal of major shareholders' holdings and profit manipulation using nominee accounts after announcing favorable plans."

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