1585 Reports of Unfair Stock Market Trading... Financial Authorities Pledge "Strict Response"

[Asia Economy Reporter Ji Yeon-jin] From October last year to the 16th of last month, a total of 1,585 reports were received during the intensive reporting period for unfair trading in the securities market.

The Financial Services Commission, Financial Supervisory Service, Korea Exchange, and Korea Financial Investment Association held the 3rd meeting of the Securities Market Illegal and Unsound Activities Intensive Response Team on the 30th of last month to review the progress, the authorities announced on the 2nd.

Since announcing a comprehensive plan in October last year, the financial authorities have strengthened the inspection and detection system for illegal and unsound activities in the securities market. They have operated a monitoring team for stock leading chat rooms and a dedicated team for focused monitoring of theme stocks, and in March, established an illegal short-selling detection system to enhance market surveillance capabilities against violations of short-selling regulations.

From October 19 of last year, when intensive reporting began, to the 16th of last month, 978 reports were received by the Financial Supervisory Service and 607 by the Korea Exchange.

Based on this, the financial authorities have issued 1,535 market alerts and taken 1,510 preventive measures, actively responding to the situation.

They conducted audits on 31 companies suspected of accounting fraud related to no-capital mergers and acquisitions (M&A), completed measures on 16 companies including filing complaints with the prosecution, and detected 54 cases of unauthorized or unregistered similar investment advisory businesses, notifying the police. They also identified six market disorder offenders and imposed a total fine of 640 million KRW.

In particular, at this meeting, measures to strengthen the management and supervision of similar investment advisory businesses were finalized, allowing only registered investment advisory firms with the financial authorities to operate stock leading chat rooms through group chat rooms. Accordingly, similar investment advisory businesses are prohibited from opening group chat rooms to operate stock leading chat rooms.

The financial authorities plan to continue strictly responding to unfair trading and intensively promote focused inspection tasks in vulnerable areas until the end of June. They also plan to promptly carry out institutional improvement tasks such as legal amendments within this year.

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