Stock price manipulation investigation shortened by up to half... 'Joint Response Team' launched

There is an anticipated reduction in the duration of investigations into unfair trading practices within the stock market. Previously, these investigations took an average of 12-15 months, but they are now expected to be completed within approximately 6-7 months.

This development was prompted by a directive from President Lee Jae-myung issued a month prior, which called for the elimination of unfair trading. Consequently, financial authorities have organized the ‘주가조작 근절 합동대응단’ to spearhead this effort.

During a briefing at the Korea Exchange in Yeouido, Seoul, on the morning of the 9th, Lee Yoon-soo, a standing member of the Securities and Futures Commission of the Financial Services Commission, announced plans to form a joint response team. This team will consist of members from the Financial Services Commission, Financial Supervisory Service, and the Korea Exchange, all collaborating within a centralized location at the exchange.

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Although the joint response team does not have the authority to impose sanctions, its primary objective is to improve the Korea Exchange's ability to handle cases more swiftly. Previously, the stages of detection, investigation, and sanction were dispersed among different institutions, resulting in delays. The new strategy aims to eliminate these inefficiencies by coordinating efforts and creating an expedited system.

A representative from the financial authority highlighted, "By speeding up the investigation process for unfair trading, we can significantly enhance investor protection and restore market trust." This approach particularly aims to deliver a more robust and responsive mechanism to address significant incidents such as stock price manipulation.