"Stock price manipulation ruins lives" — financial authorities seek to make joint response task force permanent

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\r\n[Financial News] The financial authorities are seeking to institutionalize the Joint Task Force for Eradicating Stock Price Manipulation as a permanent body to root out unfair trading in the capital market, including stock price rigging. Within the Financial Supervisory Service (FSS), they plan to build a one-stop response system that connects market surveillance directly to compulsory investigations, and to apply all-round pressure by conducting accounting inspections in parallel for major cases with significant social impact, such as the MBK–Homeplus case.
FSC Chairperson Lee Eog-weon and FSS Governor Lee Chan-jin announced these plans during a National Policy Committee briefing held at the National Assembly in Yeouido, Seoul, on the 5th.
The FSC stated that, based on the performance of the Joint Task Force for Eradicating Stock Price Manipulation launched in July last year, it will review ways to extend its operation and formalize it through institutional measures.
\r\nIn addition, to prevent unfair trading by insiders such as executives of listed companies, the authorities plan to mandate claims for the return of short-swing trading profits and to require public disclosure when executives have prior convictions for fraud, breach of trust or embezzlement, even if unrelated to their current duties. They also intend to accelerate amendments to the Financial Investment Services and Capital Markets Act, including raising the level of fines for disclosure violations to more realistic levels.
The FSS will establish an integrated framework that links market surveillance, planned investigations and compulsory investigations in order to maximize the efficiency of its investigative capabilities.
In particular, for issues that draw strong public interest or involve a large number of victims, the FSS plans to deploy its investigation, inspection and accounting oversight functions in a coordinated, multi-layered manner. Previously, in connection with MBK Partners' operation of Homeplus, the FSS simultaneously carried out investigations, inspections and accounting reviews before referring the case to law enforcement.
\r\nChairperson Lee said, "We will work to eradicate stock price manipulation by preventing insider unfair trading and strengthening disclosure, and we will spread a culture that ensures fair protection of shareholders and enhances shareholder value," adding, "By preparing legislation to establish consistent accounting principles, we will build a fair and transparent order in the capital market."
Governor Lee also stated, "We will expand our market surveillance units and the joint task force, and push ahead with upgrading the market surveillance system," emphasizing, "We will make sure the market firmly recognizes that stock price manipulation leads to total ruin."
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elikim@fnnews.com Reporter Kim Mi-hee Reporter