The "joint response team to eradicate stock price manipulation" was officially launched on the 30th at the Korea Exchange with a ceremony to unveil its sign. The joint response team's core objective is to efficiently operate the exchange's psychological functions and the investigative functions of the Financial Services Commission and the Financial Supervisory Service in one space.
On that morning, the Korea Exchange in Yeouido, Seoul, held a sign unveiling ceremony to commemorate the start of operations for the joint response team to eradicate stock price manipulation. Attendees included Commissioner Kwon Dae-young of the Financial Services Commission's Securities and Futures Commission, Deputy Governor Lee Seung-woo of the Financial Supervisory Service, and Chairperson Kim Hong-sik of the Exchange Market Surveillance Committee.
The joint response team is a collaboration organization established at the exchange to enhance the initial response functions of the Market Surveillance Committee in accordance with the "measures to eradicate unfair trading in the capital market" announced by the financial authorities on the 9th.
At the ceremony, Commissioner Kwon emphasized, "Those who manipulate stock prices will inevitably face ruin and will make this year a foundational year for eradicating stock price manipulation," adding that "the launch of the joint response team is a kickoff toward an upward trend for KOSPI."
Commissioner Kwon stated that the capabilities of related agencies will be fully mobilized to quickly detect stock price manipulation and impose economic disadvantages greater than the illegal profits with penalty surcharges that exceed those profits. Those caught manipulating stock prices by the joint response team will face bans on future stock trading and measures to prevent their appointment as executives of listed companies. Furthermore, he will promote rapid criminal actions through organic cooperation with investigative agencies.
On that day, Commissioner Kwon also pointed out the unfair trading by employees of some financial companies. Earlier, on the 23rd, NH Investment & Securities had a raid by the Financial Services Commission after it was discovered that an employee used undisclosed information related to a public offering to gain an unfair advantage.
Commissioner Kwon said, "I am very dismayed by the unfortunate incidents involving employees of financial companies, who are direct participants in the capital market and provide infrastructure functions, and I will impose severe penalties as a deterrent." He further requested, "Financial companies should conduct internal controls and fulfill their fiduciary duties to ensure that such events do not recur."
Deputy Governor Lee Seung-woo, who leads the joint response team, expressed his commitment to demonstrating cases of ruin through concentrated investigations of unfair trading in the near future. Chairperson Kim Hong-sik stated, "The Market Surveillance Committee plays a pivotal role in addressing unfair trading," adding, "We will work diligently to quickly and accurately confirm fraudulent trading before evidence is destroyed and hand it over to the joint response team."
In the future, the financial authorities plan to swiftly promote various follow-up measures, including legislative amendments and system improvements, to ensure that the 'one strike and you're out' principle for stock manipulators is firmly established in the market.