Lee Bok-hyun, Financial Supervisory Service Chief, Apologizes for Failing to Detect Stock Manipulation in Advance... Will Improve Investigation System

Attendance at Joint Forum with Related Agencies to Eradicate Unfair Trade
Plan to Strengthen Pre-Monitoring Functions as an Opportunity for Reflection
Commitment to Apply Zero-Tolerance Principle to Illegal Activities

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), apologized for the stock price manipulation incident originating from Soci?t? G?n?rale (SG) Securities, stating, "As the head of the FSS, I cannot help but feel deeply sorry to the public for failing to detect the recent sharp stock price plunge in advance." He also announced that he would take this incident as an opportunity for reflection and push forward with strengthening proactive market surveillance functions, improving work efficiency through the reorganization of investigative departments, and enhancing cooperation with related agencies.

On the 23rd, Governor Lee attended the 'Joint Forum of Related Agencies to Eradicate Unfair Trading' held at the Korea Exchange, where he said, "To maintain a sound competitive environment in the capital market, it is crucial to establish market order through strict surveillance, investigation, and punishment," and added, "We will improve the FSS's investigative work and organizational structure."

Governor Lee stated, "First, we will reinforce personnel performing market surveillance functions and improve the monitoring system," adding, "In particular, we will shift from a passive method that mainly relies on tips to a proactive approach that collects trend information on new types of unfair trading through both online and offline channels. This information will be combined with various other data held by the FSS for analysis, thereby strengthening the preventive surveillance function."

He continued, "Second, we will reorganize the investigative department structure to enhance work efficiency," explaining, "We will remove the silos between organizational units currently composed of the Planning and Investigation Bureau, Capital Market Investigation Bureau, and Special Investigation Bureau to eliminate blind spots in work. In the event of a major incident, all available personnel from all investigative departments will be flexibly reorganized to focus on the investigation of the case."

Additionally, he said, "Third, we will steadily strengthen cooperation with related agencies," stating, "We will improve the efficiency of information sharing related to investigations and tips through IT systems with the Financial Services Commission and Korea Exchange. Even in the early stages of investigation before specific suspicions are identified, if rapid responses such as travel bans are deemed necessary, we will cooperate organically with the Southern District Prosecutors' Office."

Furthermore, Governor Lee expressed his determination, saying, "We will consistently apply a zero-tolerance principle to illegal acts and establish market order through strict surveillance, investigation, and punishment," and added, "We will do our utmost to expand the scale of Korea's capital market and ensure that the capital market becomes a foundation supporting the real economy." Finally, he said, "The government is currently making every effort to expand the scale of Korea's capital market through initiatives such as pursuing inclusion in the MSCI Developed Markets Index, and to ensure that the capital market serves as a foundation supporting the real economy. I ask everyone gathered here today to become guardians of Korea's capital market and be the driving force behind its development."

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