[Asia Economy Reporter Park Jihwan] The Korea Stock Investors Union (KOSIU), a group of individual stock investors, has submitted a "National Audit Request" to the Board of Audit and Inspection, demanding an investigation into the Financial Services Commission and the Financial Supervisory Service for neglecting illegal and manipulative short-selling activities, which have caused financial losses to domestic investors.
On the 17th, KOSIU announced that it had submitted the "National Audit Request for Misconduct and Negligence by the Financial Services Commission and the Financial Supervisory Service." A total of 434 investors signed the petition. The main text of the audit request spans 47 pages.
The National Audit Request system allows 300 or more citizens aged 19 or older to jointly petition the Board of Audit and Inspection to investigate public institutions, including central administrative agencies, if their handling of affairs (including the duties of affiliated public officials) is judged to have harmed the public interest through violations of laws or corrupt practices. If it is determined that there has been illegal or improper conduct harming the public interest, 300 or more citizens aged 19 or older can jointly request an audit from the Board of Audit and Inspection.
In the audit request, KOSIU claimed that the Financial Services Commission and the Financial Supervisory Service violated their duty to protect stock investors as stipulated in the "Act on the Establishment of the Financial Services Commission, etc." and engaged in presumed negligence of duty, requesting audits on a total of 13 items. Specific audit requests include △ failure to process complaints requesting special inspections of securities firms △ investor damages caused by incomplete administrative orders △ failure to process complaints requesting special inspections of market makers and insufficient punishment of illegal securities firms, among others.
Jeong Eui-jeong, the representative of KOSIU, criticized, "Foreigners and institutional investors who are powerful, wealthy, and well-informed are unilaterally exploiting and plundering the assets of individual investors who are weak and lack capital. This is the harsh reality of our country's stock market."
He added, "This audit by the Board of Audit and Inspection will be a once-in-a-lifetime opportunity to upgrade our capital market and establish fairness. If this opportunity is missed, the structure of asset exploitation against 10 million individual investors will become permanently entrenched, and the dark clouds over the national economy will likely persist," emphasizing the urgency.
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