FSS Chief: "Second Lower Limit Price Incident Identified in Advance... Will Deliver Results Quickly" (Comprehensive)

Lee Bok-hyun, Governor of the Financial Supervisory Service, stated on the 15th that the incident in the stock market where five stocks simultaneously plummeted to the lower limit price was an issue that had been monitored for a long time, and that investigation and inquiry results would be presented quickly.

Governor Lee made this remark on the same day during the plenary session of the National Assembly's Political Affairs Committee when Yoo Ui-dong, a member of the People Power Party, asked about the financial authorities' response to the five-stock lower limit price incident.

[Image source=Yonhap News]

Governor Lee explained, "The stocks that crashed the previous day and the issue have been monitored by the Financial Supervisory Service for a long time, and we had already grasped some facts regarding unusual trends or causes related to stock price rises and falls, as well as the parties involved."

He continued, "In the SG Securities crash incident, many victims occurred due to the prolonged lower limit price, but in yesterday's case, since we had already identified the situation in advance, we were able to promptly suspend trading."

Governor Lee emphasized, "Regarding this case, investigations and inquiries are being conducted not only by the Financial Services Commission and the Financial Supervisory Service but also by the prosecution and the stock exchange, so we will be able to show the results to the public much faster than expected."

Regarding the allegation by Yoo Chang-hyun of the People Power Party that a stock-related community operator was involved in this incident and, similar to the SG incident, had manipulated the stock price over a long period to bypass the market's detection system, Governor Lee said, "It has been confirmed that activities to intentionally evade the detection system actually existed in the market."

He added, "We are also identifying the facts related to rumors or speculations about the (operator)."

Governor Lee stated, "I believe that the abolition of the Joint Securities Crime Investigation Unit in 2020 significantly contributed to the deterioration of the related response capabilities," and emphasized, "I think stricter policy responses are necessary. If the legislative branch actively promotes policies such as the amendment to the Capital Markets Act, including the calculation of unjust profits and imposition of surcharges, we will diligently enforce them."

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