FSS Finds 147 Employees Violated Stock Investment Rules Over Six Years; Only 2% Disciplined

[Financial News] Violations of stock investment-related rules by Financial Supervisory Service employees have been detected every year, but only about 2% of cases resulted in disciplinary action over the past six years.
According to data submitted by the Financial Supervisory Service to Park Sung-hoon, a People Power Party member of the National Policy Committee, on the 14th, a total of 147 FSS employees were found to have violated stock investment-related rules, including the Financial Investment Services and Capital Markets Act and the code of conduct for employees, between 2020 and July 2026. By year, the figures were 31 in 2020, 11 in 2021, 28 in 2022, 14 in 2023, 22 in 2024, and 23 in 2025. Another 18 were detected through July this year. Only four people, or 2.7%, received disciplinary action under personnel management rules. Two received pay cuts and two were reprimanded, while the rest received only caution or warning measures rather than formal discipline.
The Financial Investment Services and Capital Markets Act imposes trading restrictions on financial company employees to prevent unfair practices and conflicts of interest. FSS employees are also required to comply with these rules. They must trade through a single account in their own name and report their transaction details quarterly or monthly.
The value of financial investment products held by FSS employees rose by more than 50% over roughly six years, prompting calls for stronger internal controls. The value of reportable financial investment products held by FSS employees reached 30.56 billion won last year, up 11.008 billion won, or 56.3%, from 2020. The number of holders rose by 246, or 41.9%, to 833, while the average holding per person increased by 3.4 million won, or 10.2%, to 36.7 million won. Last year, the total value held, the number of holders, and the amount held per person all increased from the previous year. Although all three indicators declined slightly in 2024, they rose last year by 5.513 billion won, or 22.0%, 59 people, or 7.6%, and 4.3 million won, or 13.3%, respectively.
Park Sung-hoon said, "As employees’ stock holdings continue to grow, the internal control system must be reassessed and the level of penalties strengthened."
[email protected] Eun-hyo Cho Reporter