Capital Market Special Investigation Unit Doubles from 16 to 31 Members... Capable of Independent Awareness Investigations as Well

[Asia Economy Reporter Park Ji-hwan] The number of special judicial police officers under the financial authorities investigating unfair trading or insider information use in the capital market will nearly double from the current 16 to 31. The scope of their duties will also expand to include not only cases assigned under the prosecution's investigation command but also cases reported or notified by the Securities and Futures Commission resolution, as well as self-initiated investigations.

The Financial Services Commission announced on the 27th a plan to reorganize the special judicial police reflecting these changes.

First, the current special judicial police force of 16 will be significantly expanded to 31. Previously, 10 special judicial police officers working at the Financial Supervisory Service (FSS) conducted compulsory investigations (such as communication record checks, searches and seizures, and travel bans) related to unfair trading activities like market manipulation and insider trading under the direction of prosecutors. Additionally, six special judicial police officers, including one Financial Services Commission staff member, were dispatched to the prosecution to handle jurisdictional cases.

The improvement plan includes appointing three Financial Services Commission officials and four FSS employees as special judicial police officers within the Financial Services Commission's Capital Market Investigation Unit to manage and support the overall capital market special judicial police operations and conduct investigations on specific cases. Furthermore, the number of special judicial police officers working at the FSS will increase from 10 to 15 to strengthen the internal investigative workforce. The number of personnel dispatched to the prosecution will also increase by three?one from the Financial Services Commission and two from the FSS?raising the total from six to nine.

The scope of duties will also be expanded. Previously, only cases assigned to the special judicial police by the prosecution among 'fast-track' cases?those transferred to the prosecution by the Securities and Futures Commission chairman's decision without going through the commission's deliberation and resolution due to the need for urgent and swift investigation?could be investigated. Going forward, capital market special judicial police will be able to conduct investigations under the prosecutor's direction for cases reported or notified by the Securities and Futures Commission resolution. Additionally, cases reported to the Securities and Futures Commission chairman after preliminary investigations of exchange disciplinary materials or internal inquiries by the Financial Services Commission special judicial police, when further investigation is deemed necessary, will also be included in their duties.

The Financial Services Commission plans to establish the 'Capital Market Special Judicial Police Work Regulations (Financial Services Commission Notice)' by January next year to set detailed work procedures. In the first quarter of next year, newly appointed capital market special judicial police officers will be assigned to the Financial Services Commission's Capital Market Investigation Unit and the FSS special judicial police office to carry out investigative duties.

A Financial Services Commission official stated, "In addition to expanding the capital market special judicial police, we will also increase the number of FSS investigation personnel by three to strengthen our investigative capabilities against unfair trading."

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