Focused Management on Stocks Including 'Jusik Leading Room' Spam Messages... Trading Volume Drops 56%

Designation of Stocks Frequently Mentioned in Buy Recommendation Messages as 'Spam-Related Excessive Investment Caution Stocks'

[Asia Economy Reporter Minwoo Lee] Designating stocks frequently appearing in spam text messages recommending stock purchases as investment caution stocks has resulted in a calming effect on trading volume and stock price fluctuations.

On the 7th, the Market Surveillance Committee of the Korea Exchange announced that it analyzed the operational effects of the 'Excessive Spam-Involved Stocks Investment Caution Designation' criteria established in March last year and obtained such results.

At that time, to minimize investor damage caused by rampant stock purchase recommendation spam messages, the Market Surveillance Committee signed a business agreement with the Korea Internet & Security Agency and incorporated spam message report status into the market alert system. Stocks with spam message reports (about 100,000 reports per month on average) and stock price or trading volume increasing beyond certain criteria were extracted as spam-involved stocks, and among these, stocks extracted on two or more days within the recent five days were immediately designated as excessive spam-involved investment caution stocks.

Since the system's implementation, a total of 167 cases were designated as excessive spam-involved stocks by the end of last year. As a result, the average stock price fluctuation rate of designated stocks showed a calming effect on temporary overheating, dropping from 5.13% the day before designation to -3.48% on the designation day. The average trading volume also stabilized, decreasing from about 17 million shares on the disclosure day (the day before designation) to 7.5 million shares on the designation day. A Korea Exchange official explained, "Monitoring online communities such as stock-related bulletin boards confirmed the market caution effect, as posts stating 'excessive spam-involved stocks are manipulated stocks' increased."

In the future, spam message information will be utilized for monitoring new types of unfair trading activities using similar investment advisory firms, leading chat rooms, and various social network services (SNS), as well as for theme stock monitoring. Through cooperation with related organizations, various analytical information including spam message data will be widely used to prevent unfair trading.

The Korea Exchange requested, "If you become aware of suspicious unfair trading activities related to mobile phone spam messages, please actively report them to the Korea Exchange Market Surveillance Committee's Unfair Trading Reporting Center."

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