[Reporter’s Notebook] Speed Has Been Proven, Now Consistency Must Follow

At 11:00 a.m. on September 23, a previously unscheduled briefing by the Joint Response Team for Eradicating Stock Price Manipulation was held in the Korea Exchange press room. Reporters quickly filled the room in response to the sudden announcement. Although the team members appeared calm, there was a clear sense of determination.

Lee Seungwoo, the head of the team, stood at the podium and stated, "This morning, we conducted simultaneous search and seizure operations and account payment suspensions." He went on to explain why the briefing had to be called so urgently. The atmosphere was tense throughout the session.

The case disclosed involved stock price manipulation amounting to 100 billion won. An 'elite group' consisting of super-rich individuals who run general hospitals and large academies, along with financial experts, had collaborated. Their methods were meticulous: they used dozens of accounts to disperse trades and even manipulated order IPs. There were tens of thousands of coordinated trades. The financial authorities described it as a "highly sophisticated strategy." Lee emphasized, "During the period under suspicion, they submitted price manipulation orders almost every single day, relentlessly dominating the market."

This case marks the first achievement by the Joint Response Team just two months after its launch. What stands out most is the 'speed.' It took six months to reach the search and seizure stage. He explained, "Normally, when the Financial Supervisory Service conducts an investigation alone and then transitions to a joint operation leading to a search and seizure, it takes over a year."

There have long been criticisms that investigations into stock price manipulation have been sluggish. This is because the functions of investigation, review, and sanction have been dispersed among different agencies, inevitably causing delays. Therefore, achieving results in such a short period is significant. It sends a signal to the market that "things are different this time."

However, what happens next is even more important. Having demonstrated speed, the team must now show consistency. To fulfill President Lee Jaemyung's pledge that "stock price manipulation will lead to ruin," the effort cannot be a one-off. Stock price manipulation is difficult to eradicate because methods become more diverse and sophisticated as times change.

This is also necessary to enhance market credibility. Investors tend to distrust the domestic stock market, largely due to the perception that unfair practices such as stock price manipulation, insider trading, use of undisclosed information, and intervention by speculative forces are widespread. To dispel these concerns, it is essential to demonstrate consistent results.

The Joint Response Team for Eradicating Stock Price Manipulation plans to review whether to extend or make permanent its operations after about one year, considering its performance and the opinions of related agencies. Concluding the briefing, Lee stated, "We will immediately launch investigations into serious unfair trading activities to ensure that stock price manipulators have no place in our capital market."

As he said, it is hoped that the team will maintain both speed and consistency during the remainder of its term, and ultimately become an independent, permanent, single body overseeing everything from investigation to sanction and legal prosecution-a Korean version of the Securities and Exchange Commission (SEC)-serving as a safety net for investors.