Prosecutor General Lee Won-seok Emphasizes 'Ilbeolbaekgye' at Korea Exchange

[Image source=Yonhap News]

원본보기 아이콘

"(Regarding unfair trade offenders) We will strictly punish them to set a precedent so that they never set foot in the financial market again, and this perception will take root in our society."

Prosecutor General Lee Won-seok, on the 22nd, visited the Korea Exchange for the first time in history as a Prosecutor General and emphasized the will to impose strict punishment ('Ilbeolbaegye') on unfair trade practices. To this end, he announced plans to strengthen cooperation with the Korea Exchange and conduct swift investigations.

At 1:30 p.m. that day, Lee met with Chairman Sohn Byung-doo at the Korea Exchange in Yeouido, Yeongdeungpo-gu, Seoul, saying, "If anyone commits unfair trading even once, we will do our best to instill the perception that they will be severely punished and ruined."

Lee’s mention of 'Ilbeolbaegye' at the Korea Exchange is interpreted as sending a strict law enforcement message to the market regarding unfair trading practices. The eradication of unfair trading is one of the key national agenda items of the Yoon Seok-yeol administration.

Last month, Financial Services Commission Chairman Kim Ju-hyun also emphasized at the Korea Exchange KRX Conference Hall, "The government has set 'strengthening the response to securities crimes' as a core national agenda and is actively promoting it," adding, "Unfair trading in the capital market is a serious crime that robs honest ordinary investors and the future of young people."

The visit to the Korea Exchange was also to strengthen cooperation. The Korea Exchange is the frontline institution in monitoring unfair trading activities. The Market Surveillance Committee detects anomalies in trading data and shares the information with financial authorities and the prosecution.

Recently, the prosecution, along with financial authorities and the Korea Exchange, established the 'Emergency Psychological and Investigation Agency Council' for rapid response. Lee evaluated, "In the past, we shortened the time and used a fast-track approach, but in the case of the SG Securities stock price crash, we advanced to the point of gathering in one place to respond simultaneously."

He stated that they responded swiftly to the investigation related to the stock price crash involving Ra Deok-yeon and five stocks hitting the lower limit, and that the investigation is ongoing. This is interpreted as meaning that the Yoon Seok-yeol administration revived the Joint Securities Crime Investigation Unit, which was abolished during the Moon Jae-in administration, restoring the capacity to respond to securities crimes.

He reiterated, "First, we will impose the strictest and most severe punishment prescribed by law on unfair trade offenders; second, we will confiscate and recover criminal proceeds; and third, we will punish them strictly to instill the perception that they will never set foot in the financial market again."

He emphasized that legal amendments are necessary to achieve this. Under current law, the calculation of unjust gains is not explicitly stated, so in most trials related to unfair trading, unjust gains are judged as 'unknown.'

Lee said, "There is a perception that unfair trading has low sentences and light punishments, making it a profitable business," adding, "The Capital Markets Act related to the calculation of unjust gains is pending in the Legislation and Judiciary Committee, and I hope it passes quickly so that strict punishment can be enforced."

He showed a positive stance toward the movement to codify the leniency system that mitigates punishment for whistleblowers who voluntarily report unfair trading. Lee said, "From various perspectives on how to secure trust and revitalize the market without causing contraction, this is a discussable scope."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.