Financial Services Commission and Financial Supervisory Service Investigate 192 Cases of Unfair Trading... 42 More Than Last Month

3 Joint Investigations by Unfair Trade Investigation and Hearing Agencies
42 Market Alert Actions and 118 Preventive Measures Increased

Photo by Dongju Yoon doso7@

The number of unfair trade cases in the capital market under investigation by financial authorities this month has increased by 13.6% compared to last month. Among these, three cases are being jointly investigated through the Unfair Trade Investigation and Hearing Agencies Council. On the 19th, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) announced at the Unfair Trade Investigation and Hearing Agencies Council (Josimhyeop) held with the Korea Exchange and the prosecution that there are currently 192 unfair trade cases under investigation in the capital market. This represents an increase of 23 cases (13.6%) from the previous month (169 cases).

Josimhyeop is a consultative body where agencies responding to unfair trade?hearing (Korea Exchange), investigation (FSC and FSS), and prosecution (prosecutors)?review investigation status and issues and identify cooperative tasks.

Regarding the recent status of unfair trade hearings and investigations, as of last month, the Korea Exchange issued a total of 202 market warning measures, an increase of 42 from the previous month (160 cases). The number of preventive measures such as written and telephone warnings to suspicious trading accounts was 516, up by 118 cases compared to October (398 cases).

There are currently 10 hearings underway related to signs of unfair trade detected during market surveillance. Notably, these include cases involving fraudulent transactions related to no-capital mergers and acquisitions (M&A).

The FSC and FSS are conducting joint investigations on two cases through consultations within Josimhyeop. One additional case was selected through consultations on this day. The joint investigation system, introduced in 2013, utilizes the FSC investigators’ authority to conduct compulsory investigations and the FSS’s investigative personnel and experience to handle important cases.

In September, the financial authorities announced measures to improve the response system to unfair trade in the capital market, deciding to actively utilize joint investigations, compulsory and on-site investigation rights, and seizure rights (the right to retain submitted items or materials) for data confiscation.

Additionally, Josimhyeop reviewed preparations related to the penalty surcharge system for unfair trade, which will be introduced next year.

The participating agencies in Josimhyeop pledged close cooperation for early establishment, stating, "It is very important to thoroughly recover unjust profits through the penalty surcharge system along with criminal penalties to block incentives for unfair trade."

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