'Stock YouTuber with 550,000 Subscribers Found Not Guilty for Recommending Stocks Then Selling Them'

A YouTuber with 550,000 subscribers on a stock-related YouTube channel was acquitted of charges of making 5.8 billion KRW in profits through front-running while recommending stocks. Front-running is the act of buying or selling stocks before normal trading based on information obtained in advance to gain profits.

On the 9th, the Criminal Division 11 of the Seoul Southern District Court (Chief Judge Jeong Doseong) acquitted Kim Jeonghwan, who was indicted for violating the Capital Markets Act. Kim is known as the so-called "Super Gaemi" who runs a YouTube channel ranked 13th in the number of subscribers in the economic field and 4th in stock broadcasting-related YouTube subscribers.

The court stated, "Since the defendant informed that he held each (stock) and could sell or had sold them on the broadcast, it is difficult to see that (Kim) did not disclose his interests." It added, "Although it is acknowledged that the defendant made statements that appeared to recommend buying or holding off selling, he also made remarks on the same broadcast encouraging selling or advising not to make new purchases. The broadcast content can be interpreted differently depending on the viewers, so it is difficult to regard it as a uniform recommendation to buy or hold off selling."

The court also judged that for the stocks in question during the period the prosecution considered the crime occurred, external positive information and the resulting stock price increase were confirmed, making it difficult to conclude a causal relationship between Kim's remarks and the stock price rise.

However, the court said, "This does not mean the defendant's actions were justified," and "Although acquitted, it should be noted that the defendant's actions clearly have the potential to cause misunderstanding." In particular, the court pointed out that Kim traded using a Contract for Difference (CFD) account, stating, "Since other subscribers' interests are intertwined, there is a possibility of misunderstanding."

Kim said, "I sincerely appreciate the not guilty verdict and will always be careful, and I will not do YouTube broadcasts anymore." He added, "I understood that I could have influence over stock purchases and agree with the court's remarks."

Kim was indicted last June on charges of making about 5.8 billion KRW in illicit gains by front-running while recommending five stocks on his YouTube stock broadcasts from June 2021 to June last year.