A former business daily reporter accused of pocketing about 740 million won in illicit gains by buying shares in advance before writing favorable articles on specific stocks, then selling after prices surged following publication, partially denied the charges at the first trial.
The Seoul Southern District Court Criminal Agreement Division 15 (Presiding Judge Noh Yu-gyeong) held the first court hearing on the morning of the 28th for Park (34), who is accused of violating the Financial Investment Services and Capital Markets Act and the Act on Regulation and Punishment of Criminal Proceeds Concealment, among other charges.
Park was sent to trial on charges that, from Oct. 2022 to July 2024 while working as a business daily reporter, Park bought shares of a stock before an article on movers written by Park was published, then sold when the influx of buyers driven by the article's release pushed up the share price, reaping about 740 million won in illicit gains.
According to prosecutors, a total of 340 favorable articles were found to have been used by Park for stock trading. Prosecutors also applied charges of violating the Act on Regulation and Punishment of Criminal Proceeds Concealment, saying Park sought to evade detection by financial authorities and conducted front-running through a friend's-name securities account from May 2023 to July 2024, earning about 550 million won in illicit gains.
Articles on movers are reports that capture stocks (movers) showing unusual movements in the stock market, such as sharp rises or falls in prices or trading volume, and analyze the causes and background. When such articles are published, they are immediately exposed through home trading systems (HTS) and portal sites, which can lead to a rise in share prices through an influx of buyers.
That day, Park's side acknowledged writing movers articles and the fact of stock transactions, but said the conduct does not constitute a crime, denying the charges.
Park's attorney said, "We basically acknowledge the facts," but argued, "The movers articles the defendant is said to have written were ex post reports that the share price had risen, and were written based on press releases and prior articles."
The attorney continued, "These days many people obtain stock information through so-called reading rooms or Telegram, so the practical impact of the defendant's articles on stock transactions would have been minimal," adding, "Given that the stocks bought before writing the ex post movers articles had already risen substantially, it is impossible to determine the specific gains."
Regarding the allegation of concealing criminal proceeds by using a borrowed-name account, the attorney said, "It was because stock transactions were restricted within the company," and asked the court to consider that "while we recognize it was inappropriate for a reporter, it does not constitute a crime."
Prosecutors, by contrast, viewed the profits obtained by buying shares before publishing favorable articles and then selling the entire holdings after prices rose following publication as illicit gains.
Park's next court hearing will be held on Sept. 29.