Kwon Daeyoung: "We Will Respond Strictly to Deliberate Accounting Fraud"

"Deliberate accounting fraud, such as falsifying financial statements, is a serious crime that undermines trust and efficiency in the market. We will impose strict sanctions against it."

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

Kwon Daeyoung, Vice Chairman of the Financial Services Commission, made this statement during his opening remarks at the regular meeting of the Securities and Futures Commission on the 27th. This was the first meeting presided over by Vice Chairman Kwon in his capacity as Chairman of the Securities and Futures Commission.

Vice Chairman Kwon outlined three key operational directions for the Securities and Futures Commission. First, the commission aims to respond firmly to illegal and unfair practices that undermine trust in the capital market. He stated, "We will impose severe sanctions under a zero-tolerance policy for stock price manipulation and major illegal short selling. Today, we are discussing the first agenda item, which is the plan to strengthen sanctions against accounting fraud. Accounting practices must change to enhance transparency in our society."

He also stated plans to actively communicate with and support the market so that the capital market can function as a core infrastructure for productive finance. He emphasized, "Those who supply venture capital honestly and proactively, or those who perform their work with integrity, should not be unfairly held responsible for outcomes. We will develop a manual on due process to ensure that those under investigation can fully exercise their right to defense throughout all stages of investigation, audit, and sanctions."

Lastly, the commission will modernize its supervisory and sanctioning systems to keep pace with the rapidly changing market environment. "Together with related institutions such as the Financial Supervisory Service and the Korea Exchange, we will update outdated regulations," he explained. "We will also advance the market surveillance system and strengthen investigative capabilities through technological innovations such as artificial intelligence (AI), thereby modernizing our supervisory and sanctioning framework in line with changes in the market."