Vice Chair Kim So-young: "We Will Introduce Various Sanctions to Prevent Unfair Trade Practices"

Seminar on Strengthening Response to Unfair Trading in Capital Markets
"Institutional Improvements Needed to Prevent Unfair Trading Practices"

"We will promote the introduction of various sanctions to prevent repetitive unfair trading practices."

On the 8th, Kim So-young, Vice Chairman of the Financial Services Commission, stated this at the 'Seminar on Strengthening Response to Unfair Trading in the Capital Market.'

Vice Chairman Kim emphasized, "The government has improved the capital market investigation system and strengthened sanctions for effective detection and strict punishment of unfair trading, while also enhancing incentives for reporting."

He added, "Specifically, related agencies involved in capital market investigations have established an organic cooperation system by frequently sharing major investigation situations. We have introduced a penalty system for the three major unfair trading practices: insider trading, market manipulation, and fraudulent trading. Additionally, we are encouraging reporting by insiders through the introduction of a voluntary reporting reduction system and the expansion of reporting rewards."

However, Vice Chairman Kim stated, "In responding to the increasingly diverse forms of unfair trading, existing sanctions take a long time and it is difficult to prevent further damage. Therefore, the government will promote measures to diversify sanctions for unfair trading in the capital market, including restricting unfair traders from capital market transactions and appointment as executives of listed companies for up to 10 years, as well as introducing an account payment suspension system for suspected unfair traders."

He continued, "The International Organization of Securities Commissions (IOSCO) also believes that related regulations should be designed to detect and prevent unfair trading such as stock price manipulation to protect investors and enhance fairness in the capital market. Reflecting international discussion trends, it is necessary to concurrently implement various sanctions to prevent repetitive unfair trading practices." He concluded, "We will listen to the opinions of the market and experts and actively reflect them in policy."