Foreign exchange authorities take action amid currency volatility... joint inspections of foreign exchange banks begin

[Financial News] The Bank of Korea and the Financial Supervisory Service (FSS) said on the 10th that they have launched a joint foreign exchange inspection of major foreign exchange banks.
The move follows an emergency market situation review meeting held on the 7th. The inspection will combine document reviews and on-site examinations.
The joint inspection will be carried out under Article 20 of the Foreign Exchange Transactions Act and Article 35 of its enforcement decree. It will focus on whether foreign exchange banks engaged in conduct that undermines market stability, such as manipulating or fixing exchange rates to gain unfair profits or to provide unfair benefits to third parties.
The review will also cover transactions intended to distort market functions or interfere with price discovery, as well as one-way trades that exceed customer order volumes at specific times to induce unfavorable pricing for clients. Such practices are prohibited under Article 4 of the Seoul Foreign Exchange Market Code of Conduct.
The Bank of Korea and the FSS said they will take strict action under relevant laws and regulations if any illegal activity is found in the joint inspection.
hippo@fnnews.com Kim Chan-mi Reporter