New Task Force Takes Aim at Stock Manipulators: A Game Changer for Investors!

A joint task force of financial authorities and the stock market operator was launched on Wednesday to swiftly detect and eradicate stock manipulation.

Comprising officials from the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange, this joint response team is tasked with identifying and investigating illegal and unfair stock trading activities.

Previously, the responsibility for addressing unfair trading was fragmented among multiple institutions, resulting in delayed enforcement.

President Lee Jae Myung had earlier called for stringent measures against stock manipulation and unfair trading practices to bolster the domestic financial market.

Beginning in October, individuals caught illegally trading stocks will face fines of up to double their illicit gains. Additionally, the market monitoring system will shift its focus from trading accounts to individual traders.

The current account-based system leads to excessive monitoring and hinders the detection of links between accounts owned by the same individual.

Under a new “one-strike-out” policy, stock manipulators will be barred from the capital market for up to five years. This ban will restrict their ability to trade financial investment products and disqualify them from executive positions in listed companies.

The Securities and Futures Commission, operating under the financial regulator, will promptly disclose the names of major shareholders and executives implicated in illegal or unfair trading cases following a resolution.