[IssueLaw] "95% Profit Rate"... Solutions for 'Illegal Stock Leading Rooms' Engaging in False and Illegal Activities

[Asia Economy PD Yoon Jin-geun] Damage caused by ‘illegal stock leading rooms’ that provide false stock information is increasing. Experts pointed out that it is easy to register as a quasi-investment advisory business. They also advised actively utilizing the reward system for reporting illegal leading rooms.

On the Asia Economy YouTube channel ‘Lee Park Choi Legal Center,’ lawyer Lee Ki-yoon explained some methods to recover damages from certain illegal stock leading rooms.

Illegal stock leading rooms are far from typical ‘investment advisory businesses.’ According to the ‘Enforcement Decree of the Capital Markets and Financial Investment Business Act,’ quasi-investment advisory businesses do not require procedures such as business registration or hiring experts, unlike investment advisory businesses.

Also, it is easy to access quasi-investment advisory business activities by simply reporting to the authorities. Conversely, investment advisory businesses must meet requirements and register, and provide advice to specific individuals rather than the general public.

Lawyer Lee examined the types of damages caused by these entities through the ‘Violation Details by Illegal Suspicion Type’ presented by the Financial Supervisory Service.

According to lawyer Lee, they can be broadly categorized into five types: ▲violation of false reporting ▲unregistered investment advisory ▲unregistered discretionary investment ▲unauthorized investment brokerage ▲false or exaggerated advertising.

Lawyer Lee stated that if you suffer damage from these quasi-investment advisory businesses, you can report to the competent authorities. In the case of stock leading rooms, a reward of up to 2 million KRW is provided for reporting.

Lawyer Lee described illegal stock leading rooms as “acts of obtaining unfair profits with others’ money,” and said, “Active reporting can prevent damage caused by illegal stock leading rooms.”

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