Chairman Kim Juhyun: "We will respond to stock manipulation cases with a permanent collaboration system"

'Announcement of Improvement Plan for Capital Market Unfair Trading Response System'
Establishment of Permanent Collaboration System Centered on the Securities and Futures Commission
Strengthening Information Sharing between the Exchange and Financial Authorities
10th Anniversary Ceremony of the Capital Market Investigation Department (Jajodan)

Kim Ju-hyun, Chairman of the Financial Services Commission. Photo by Dongju Yoon doso7@

On the 21st, Kim Joo-hyun, Chairman of the Financial Services Commission, stated regarding the response to unfair trading such as stock price manipulation, "We will establish a permanent collaboration system centered on the Securities and Futures Commission and frequently share major hearing and investigation situations of each institution."

Chairman Kim made these remarks while announcing the "Improvement Plan for the Capital Market Unfair Trading Response System" together with four institutions including the Seoul Southern District Prosecutors' Office, the Financial Supervisory Service, and the Korea Exchange at the Government Complex Seoul in the morning.

Chairman Kim explained, "The core of this measure is to drastically reform the collaboration system for responding to unfair trading," adding, "In urgent and serious cases, we will immediately share situations and information with investigative authorities and swiftly transition to investigations if necessary to ensure strict punishment."

He also announced plans to improve market surveillance and investigation processes. He emphasized, "We will strengthen the Korea Exchange's market surveillance system and cyber monitoring system, and improve investigation procedures to more effectively utilize the capabilities and authority of the Financial Services Commission and the Financial Supervisory Service during investigations."

Accordingly, the Financial Services Commission plans to actively utilize on-site investigations and seizures in collaboration with the Financial Supervisory Service. Until now, most cases classified under the Financial Supervisory Service have not been utilized.

Additionally, Chairman Kim stressed, "We will raise the reward limit from 2 billion won to 3 billion won and restructure the system to pay rewards from the government budget," adding, "We will operate the unfair trading reporting reward system in a substantial manner."

Finally, he expressed a commitment to institutional improvements to prepare various measures and sanctions. Chairman Kim said, "We are preparing to ensure that the legislation on the penalty surcharge system and the method for calculating unjust profits is implemented smoothly early next year," and "We plan to review with related agencies the possibility of freezing accounts suspected of wrongdoing by financial authorities."

He added, "We will actively cooperate to ensure that the National Assembly swiftly discusses the system restricting capital market transactions by those with a history of unfair trading and the restrictions on executives of listed companies."

Meanwhile, the four institutions including the Financial Services Commission held a 10th-anniversary ceremony for the launch of the Financial Services Commission’s Capital Market Investigation Department (Capital Market Investigation Unit) on the same day. Following the comprehensive measures to eradicate unfair trading announced jointly by related ministries in 2013, the basic framework of the current response system was established. A representative example is the consultative body among related agencies, such as the Investigation and Hearing Institution Council established after the large-scale stock price manipulation case in April. The introduction of the fast-track system is also evaluated to have significantly strengthened the collaboration between financial authorities and the prosecution.

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