Jeong Eun-bo "Strict Measures Against Unfair Trading Using Investment Associations"

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 4th, Jeong Eun-bo, Governor of the Financial Supervisory Service, urged to strengthen planned inspections and monitoring of disclosures with a high possibility of evading disclosure obligations, such as share acquisitions using multiple investment associations.

At the capital market-related executive meeting that day, Governor Jeong stated, "Recently, due to interest rate hikes, inflation concerns, and the Russia situation, the market is generally unstable, and there is a likelihood of unfair trading riding on market sentiment such as the formation of theme stocks, which lowers market trust and raises concerns about investor damage, so it is necessary to restore market order."

According to the Financial Services Commission, there have been consecutive cases of abnormal stock price fluctuations related to the sale of insolvent companies, abnormal stock price fluctuations related to listed company acquisitions by investment associations with unclear substance, abnormal stock price fluctuations during mergers and acquisitions (M&A) between companies in different markets such as KOSDAQ and K-OTC, and abnormal stock price fluctuations due to theme formation related to surges in raw materials or parts materials.

The unfair trading cases involving investment associations under investigation by the Financial Supervisory Service reached 10 as of the end of last month. Governor Jeong said, "It is necessary to thoroughly investigate by concentrating the investigative capabilities of related departments and to strictly take action if unfair trading allegations are found, in close cooperation with related organizations such as the Financial Services Commission and Korea Exchange."

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