by Cho Seulkina
Published 15 Apr.2026 18:09(KST)
The Capital Markets Special Judicial Police (Special Judicial Police) of the Financial Supervisory Service have gained the authority to initiate investigations into self-initiated cases without requiring a referral or notification to the prosecution.
The Financial Services Commission announced on April 15 that it had approved an amendment to the 'Rules of Duties for the Capital Markets Special Judicial Police' during its regular meeting that afternoon. The amended rules took effect immediately after approval.
As a result, if the Financial Services Commission or the Financial Supervisory Service determines that there is a strong suspicion of a crime in any ongoing investigation and that a prompt investigation is necessary, they can now begin investigations immediately after review by the Investigation Review Committee, without instructions from the Securities and Futures Commission or the prosecution. Previously, investigations were limited to cases such as those triggered by abnormal trading alerts from the Korea Exchange or joint investigations by the Financial Services Commission and the Financial Supervisory Service.
The system for the Investigation Review Committee has also been revised. The Financial Services Commission decided to strengthen the committee's official review and oversight functions when determining whether to transfer an investigation case, and to improve the efficiency of reviewing Financial Supervisory Service investigations by partially changing the committee's composition.
Specifically, instead of the previous Deputy Governor of the Financial Supervisory Service, the head of the investigation department designated by the Governor of the Financial Supervisory Service and the legal advisor from the Financial Supervisory Service will now serve as committee members. In addition, to ensure confidentiality in investigations and inquiries, civilian members from the Capital Markets Investigation Review Committee will be excluded.
Furthermore, the requirements for convening the committee and submitting agenda items have been clearly defined. A meeting can be convened if requested by at least two committee members or if the chairperson deems it necessary, and an agenda item can be submitted with the approval of at least two committee members or by a proposal from the chairperson alone.
A representative of the Financial Services Commission stated, "Going forward, as all investigation cases can be converted into criminal investigations simply by going through the Investigation Review Committee, it will be possible to respond more quickly and strictly to criminal activities in the capital markets, including unfair trading. We also plan to establish detailed operational guidelines for the selection and evaluation criteria for cases to be converted, so that the Capital Markets Special Judicial Police system can be operated with public trust."
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