Han Byung-do "Economic Crimes Targeting Individual Investors Surge... Financial Authorities Must Act"

-82 Cases of Capital Markets Act Violations Detected This Year...122% Increase Compared to Last Year

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] Amid increased volatility in the capital market due to the impact of the novel coronavirus disease (COVID-19), economic crimes targeting individual investors have also surged.

According to data submitted by the National Police Agency to Assemblyman Han Byung-do of the ruling Democratic Party, a member of the National Assembly's Public Administration and Security Committee, the number of arrests for violations of the Capital Market Act and the Act on the Regulation of Similar Credit Transactions from January to August this year reached 82 and 540 cases respectively, showing a significant increase compared to previous years.

The 82 cases of Capital Market Act violations arrested up to August this year represent a 122% surge compared to 37 cases during the same period last year, surpassing the 76 cases recorded last year. The number of individuals apprehended during the same period also rose by about 83%, from 132 last year to 242 this year.

In particular, violations of the Act on the Regulation of Similar Credit Transactions, which deceive investors by promising annual returns like bank interest to grow their funds, have increased, with 540 cases arrested from January to August this year, a 32% rise compared to 410 cases in the same period last year.

Additionally, crimes targeting individual investors have been confirmed to be significant, including unregistered stock investment advisory services and similar credit transactions disguised as famous idol photo book production businesses, promising principal guarantees and annual returns of 20%.

Assemblyman Han expressed concern, stating, "Illegal stock leading chat rooms are increasing recently through YouTube and SNS, so investors need to be cautious," and added, "The police and financial authorities must actively step up and do their best to protect the property rights of the people."