"Stock Manipulators Will Inevitably Face Ruin" Joint Response Team Launched Today

"We will show that those who manipulate stock prices will inevitably face financial ruin."

The Joint Response Team for the Eradication of Stock Price Manipulation, established to prevent unfair trading in the capital market, was officially launched on July 30. It is also expected that the so-called "one-strike out" case, which was a campaign pledge of President Lee Jaemyung, will be announced soon.

On the 30th, the Korea Exchange in Yeouido, Seoul held the "Joint Response Team Plaque Ceremony for Eradicating Stock Price Manipulation." Attending the event were Kwon Daeyoung, Chairman of the Securities and Futures Commission at the Financial Services Commission (from the left), Kim Hongsik, Chairman of the Market Surveillance Committee at the Korea Exchange, and Lee Seungwoo, Deputy Director of the Financial Supervisory Service and Head of the Joint Response Team, who are taking a commemorative photo after the plaque ceremony. 2025.07.30 Photo by Yoon Dongjoo

The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange held a plaque unveiling ceremony at the Yeouido Exchange Market Tower on the morning of July 30 to commemorate the launch of the Joint Response Team. Kwon Daeyoung, Chairman of the Securities and Futures Commission (and Vice Chairman of the Financial Services Commission), stated in his opening remarks, "It is no exaggeration to say that trust in the stock market begins with the eradication of stock price manipulation," and added, "We will make this year the first year of eradicating stock price manipulation."

The Joint Response Team is characterized by its efforts to establish an organic cooperation system by eliminating spatial separation, information barriers, and the dispersion of authority that previously existed among the three organizations: the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange. The market surveillance system has also been advanced by introducing artificial intelligence (AI) technology and adopting a structure that directly tracks individual stock manipulators. Upon detection, those found guilty will be fined an amount exceeding their criminal profits, and will also be expelled from the capital market. The Financial Services Commission has recently provided a legal basis for these measures by announcing amendments to the Enforcement Decree of the Financial Investment Services and Capital Markets Act and the Capital Market Investigation Business Regulations.

Chairman Kwon stated, "Once detected, we will impose fines exceeding the criminal profits, resulting in economic disadvantages that go beyond the confiscation of illegal gains," and added, "We will prohibit stock manipulators from trading stocks and from being appointed as executives of listed companies, thereby expelling them from our capital market." Before the plaque unveiling ceremony, he also held a separate meeting with the staff of the Joint Response Team, urging them to eradicate unfair trading practices in the capital market.

On the 30th, the Korea Exchange in Yeouido, Seoul held the "Joint Response Team Plaque Ceremony for Eradicating Stock Price Manipulation." Kwon Daeyoung, Chairman of the Securities and Futures Commission at the Financial Services Commission, who attended the event, is delivering a speech after the plaque ceremony. 2025.07.30 Photo by Yoon Dongjoo

The financial authorities are demonstrating such a strong will to eradicate stock price manipulation because they believe that securing market trust is essential to ushering in the "KOSPI 5000 era" as pledged by President Lee. On June 11, President Lee visited the Exchange and instructed strict measures against unfair trading, stating, "We will make it clear that anyone who tries to play games in the Korean stock market will be financially ruined." In less than a month, the authorities launched the Joint Response Team and announced the "Action Plan to Eradicate Unfair Trading in the Capital Market." On the previous day, Oh Kihyung, Chairman of the Democratic Party's KOSPI 5000 Special Committee, who also visited the Exchange, said, "We must change the cynicism and distrust that 'escaping the stock market is a matter of intelligence' into trust that 'investing in the stock market is a matter of intelligence,'" and added, "There are high expectations for the activities of the Joint Response Team."

Accordingly, the first case of President Lee's one-strike out policy and a model example of "financial ruin for stock manipulators" by the Joint Response Team is expected to be disclosed soon. The Joint Response Team is currently prioritizing the investigation of: ▲ organized and planned stock price manipulation groups and individuals with criminal records, ▲ cases of unfair trading by major shareholders and management, and ▲ new methods such as the use of social networking services (SNS).

Chairman Kwon emphasized, "Currently, there is a global 'investment war' at the national level involving tariff wars, AI, and climate change. To survive in this environment, our capital market must operate smoothly based on trust," and added, "The launch of the Joint Response Team today is the first step toward a capital market in which the public can invest with confidence, and marks the opening ceremony for the era of KOSPI's upward trajectory."

However, he expressed concern regarding the recent disgraceful incidents involving employees of financial companies who are direct participants in the capital market and provide infrastructure functions. He said, "I find it extremely deplorable and will impose strict punishment as a warning to others." He continued, "It is absolutely unacceptable for those who evaluate the capital market and provide information as direct or indirect participants to commit illegal acts by taking advantage of their superior access to information compared to the general public," and he also called for self-discipline within the industry.