Stock price manipulation investigation shortened by up to half... 'Joint Response Team' launched
Traditionally, inquiries into unfair trading activities in the stock exchange have spanned an average duration of 12 to 15 months. However, this has been targeted for reduction to approximately 6 to 7 months.
This development is a direct consequence of President Lee Jae-myung's mandate issued a month prior, calling for a decisive crackdown on unfair trading. In response, the financial authorities have initiated the 'Unfair Trading Eradication Joint Response Team' to tackle this issue.
During a press conference at the Korea Exchange, located in Yeouido, Seoul, on the morning of the 9th, Lee Yoon-soo, a permanent member of the Securities and Futures Commission under the Financial Services Commission, announced, "We are establishing a joint response team that will bring together the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange in a single venue within the exchange itself."
The newly formed joint response team does not wield independent sanctioning power. Its principal objective is to amplify the capabilities managed by the Korea Exchange, thereby expediting the handling of cases. In the past, the processes of detection, investigation, and sanctioning were scattered among different institutions, leading to bottlenecks. Through collaborative efforts, the aim is to streamline these procedures, minimizing unnecessary repetitions and establishing a more efficient system.
A representative from the financial authority elaborated, "By hastening the probe into unfair trading practices, we will greatly enhance the protection offered to investors and aid in the recovery of trust in the market," adding further, "This approach will particularly fortify and expedite our ability to address significant incidents such as stock price manipulation with greater efficacy."
A financial authority official explained, "Accelerating the investigation of unfair trading will significantly contribute to investor protection and the restoration of market trust," adding, "In particular, it will enable a stronger and faster response to major incidents like stock price manipulation."