Stock price manipulation investigation shortened by up to half... 'Joint Response Team' launched

The timeframe allocated for investigating dubious trading practices within the stock market is anticipated to decrease from the usual 12-15 months to an estimated 6-7 months.

This development comes in the wake of President Lee Jae-myung's directive issued a month prior, emphasizing the necessity to "eradicate unfair trading." Consequently, the financial authorities have activated the 'Joint Response Task Force for the Elimination of Stock Price Manipulation.'

During a briefing at the Korea Exchange in Yeouido, Seoul, on the 9th, Lee Yoon-soo, a standing commissioner of the Securities and Futures Commission under the Financial Services Commission, announced, "We intend to implement a joint response mechanism where the Financial Services Commission, Financial Supervisory Service, and the Korea Exchange will collaborate within a single location at the exchange."

The collaborative response unit, although lacking direct punitive authority, is designed to enhance operational efficiency at the Korea Exchange, thus expediting the case handling process. Previously, the stages of detection, investigation, and sanctioning were fragmented across different entities, resulting in procedural delays. The new strategy aims to mitigate these redundancies through integrated operations and establish a more agile system.

An official from the financial authorities clarified, "Speeding up the examination of unfair trading practices will play a crucial role in ensuring investor protection and restoring market trust." The official further noted, "This approach particularly facilitates a more robust and swift response to significant issues such as stock price manipulation."

A financial authority official explained, "Accelerating the investigation of unfair trading will significantly contribute to investor protection and the restoration of market trust," adding, "In particular, it will enable a stronger and faster response to major incidents like stock price manipulation."