Bill to Restrict Executives of Listed Companies Involved in Stock Manipulation Proposed... "Criminal Records of Listed Company Executives Must Also Be Disclosed"

(Photo by Korea Exchange)

[Asia Economy Reporter Ji Yeon-jin] As the government is pushing for measures to restrict investors who engage in unfair trading from investing in the stock market and serving as executives of listed companies for up to 10 years, there is a growing call to also disclose the criminal records of listed company executives who have been punished for unfair trading and other offenses.

On the 3rd, Kim Gap-rae of the Korea Capital Market Institute proposed at the '3rd Relay Seminar to Resolve the Korea Discount,' jointly hosted by the Financial Services Commission, Korea Exchange, and Korea Capital Market Institute, that "before discussing restrictions on the appointment of listed company executives, it is necessary to consider implementing a disclosure system for the criminal records of listed company executives."

Earlier, Professor Kim Yoo-sung of Yonsei University presented on the topic of 'Diversifying Sanctions for Unfair Trading.' He addressed similar systems and key issues related to the government's plan announced on the 29th to strengthen responses to unfair trading, including restricting capital market investments by unfair traders.

Professor Kim stated, "Given the current insufficiency of administrative sanctions against unfair traders in the capital market, there is a need to introduce measures such as trading restrictions in the capital market and restrictions on the appointment of listed company executives to enhance the effectiveness of sanctions," adding, "When designing detailed systems, careful and in-depth review is required to ensure sufficient predictability, balance between the conduct and sanctions, and to avoid excessive restrictions on fundamental rights."

He also mentioned the urgent need to introduce legislation on fines for unfair trading in the capital market and the legalization of calculating unjust profits, which are currently pending in the National Assembly.

Regarding these proposals, Yoon Min-seop, a research fellow at the Financial Consumer Protection Foundation, added, "Since many general investors perceive unfair trading to be widespread in the capital market, it is necessary to devise immediate and effective sanctions to restore the trust of general investors," while Song Kyung-ok, a lawyer at Sejong Law Firm, advised that detailed system design is necessary for capital market trading restrictions and restrictions on the appointment of listed company executives, considering constitutional consistency.

Lee Seung-beom, Executive Director of Korea Exchange, agreed, stating, "Since it takes a long time from detecting unfair trading to imposing sanctions and there are no effective sanctions before a final judgment, it is necessary to prepare various sanction measures to supplement the timeliness and effectiveness of sanctions."

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