Financial Services Commission Cancels Legislative Notice on 'Stock Price Manipulation Penalties'

On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where the financial authorities decided to include mortgage loans (Judaemdae) in the 'debt refinancing' infrastructure scheduled to be launched in May by the end of the year. The financial authorities explained that they aim to reduce the interest burden on mortgage loans by establishing a debt refinancing platform that allows users to compare loan interest rates across the financial sector at a glance and switch loans easily. Photo by Dongju Yoon doso7@

The Financial Services Commission (FSC) abruptly canceled the legislative notice for the enforcement decree of the Capital Markets Act amendment, which stipulates the calculation of unjust gains arising from unfair trading such as stock price manipulation.

The authorities explained that additional discussions were identified during consultations between the Ministry of Justice and the Supreme Prosecutors' Office. However, some interpret this as a conflict between the criminal justice authorities and financial regulators regarding the calculation of unjust gains.

On the 21st, the FSC announced that it had canceled the amendment to the subordinate statutes of the Capital Markets and Financial Investment Services Act (Capital Markets Act enforcement decree and supervisory regulations), which was publicly notified on the 18th, effective from the 22nd, and plans to reissue the legislative notice in September.

The Official Gazette is a government publication that officially informs the public of major national policies. Corrections are only allowed in cases of typographical errors, mistakes, or concerns about personal privacy infringement. It is very unusual to cancel a legislative notice after it has been published in the Official Gazette, as in this case.

Regarding the cancellation of the legislative notice, the FSC stated in an official explanation, "During discussions with related ministries such as the Ministry of Justice and the Supreme Prosecutors' Office before the legislative notice, it was agreed that in order to effectively sanction unfair trading through the upcoming amended law, more in-depth discussions should be conducted before soliciting public opinion through the legislative notice."

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