Financial Services Commission Chairman: "Suspecting Market Disruption in SG Incident... Will Mobilize All Capabilities"

Kim Ju-hyun, Chairman of the Financial Services Commission, stated on the 27th regarding the ‘massive lower limit price plunge caused by SG Securities’ that “the financial supervisory authorities and the prosecution will mobilize all their capabilities to handle the situation swiftly and efficiently.”

Financial Services Commission Chairman Kim Joo-hyun attended the PF Lenders Agreement Ceremony held at the Bankers Association Building in Myeongdong 1-ga, Jung-gu, Seoul on the 27th and delivered a congratulatory speech.
Photo by Yoon Dong-joo doso7@

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Chairman Kim made these remarks after meeting with reporters following the ‘Real Estate Project Financing (PF) Major Lenders Agreement Ceremony’ held at the Korea Federation of Banks in Jung-gu, Seoul. He said, “Today (the 27th), 34 personnel from the Southern District Prosecutors’ Office, the Korea Exchange, and the Financial Supervisory Service jointly conducted a search and seizure operation.” He added, “There are several suspected market disruption factors, and we are consulting closely with the Financial Supervisory Service to respond accordingly.”

The Financial Services Commission conducted search and seizure operations at the office of ‘H Investment Consulting Firm,’ known as the stock manipulation group behind the SG Securities incident, located in Gangnam-gu, Seoul, as well as related companies and residences.

Chairman Kim explained, “We are internally reviewing several possibilities regarding their methods, but we need to conduct a precise investigation to know for sure,” adding, “If there is a need to supplement regulations based on the investigation results, we will certainly do so.”

Regarding recent criticisms that the financial authorities’ intervention in loan interest rates conflicts with the Bank of Korea’s policy stance, he said, “I do not agree,” and added, “The financial authorities are assessing whether the rise in loan interest rates was reasonable, and the banking sector also judged that there was room for adjustment, which is why this was done.”

On the introduction of new banks to promote competition in the banking sector, he said, “No clear conclusion has been reached yet,” and explained, “There are other ways to promote competition, such as debt refinancing platforms and information disclosure.”

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