"Manipulated Stock Prices Using 13 Accounts to Gain 30 Million Won"…Securities Commission Refers Individual Investor to Prosecution

An individual investor who manipulated the prices of low-volume stocks through 13 accounts and made illicit gains amounting to tens of millions of won has been referred to the prosecution.

Kwon Daeyoung, Chairman of the Securities and Futures Commission (Vice Chairman of the Financial Services Commission), is speaking at the regular meeting held at the Government Seoul Office in Jongno-gu, Seoul on August 27, 2025. Photo by Jo Yongjun

On April 8, the Securities and Futures Commission of the Financial Services Commission announced at its 7th regular meeting that it had notified investigative authorities about Mr. A, who is suspected of violating the ban on price manipulation under the Capital Markets Act.

According to the Securities and Futures Commission, from March 21, 2017 to April 30, 2018, Mr. A submitted 5,042 price manipulation orders for 1,951,898 shares of Company B through 13 accounts belonging to himself, his family, and companies he owned (a total of five individuals), inflating the stock price and reaping an illicit gain of 30 million won.

The investigation revealed that Mr. A traded shares of Company B almost daily, judging that the low trading volume made it easy to exert market dominance. To increase trading profits, he repeatedly bought and sold Company B shares after taking out loans using his holdings of Company B shares as collateral.

It was also found that Mr. A received eight preventive measures against unfair trading from securities firms before carrying out the price manipulation, but ignored these warnings and continued his activities by switching securities firms.

According to the Capital Markets Act, engaging in price manipulation to induce trading can result in imprisonment for at least one year or a fine of up to six times the amount of illicit gains.

An official from the Financial Services Commission stated, "The financial authorities are closely monitoring unfair trading practices and will thoroughly investigate and take stern action against any illegal activities."

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