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

The duration required to probe cases of unfair trading in the stock market is anticipated to decrease from the usual 12-15 months to an estimated 6-7 months.

This development is a response to President Lee Jae-myung's instructions issued one month prior, emphasizing the need to "eliminate unfair trading," which has led the financial authorities to set up a task force known as the ‘Stock Manipulation Eradication Joint Response Team.’

During a press briefing at the Korea Exchange located in Yeouido, Seoul, on the morning of the 9th, Lee Yoon-soo, a standing member of the Securities and Futures Commission within the Financial Services Commission, announced, "We intend to establish a collaborative team within the exchange, comprising the Financial Services Commission, Financial Supervisory Service, and the Korea Exchange."

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The joint response team does not function as an independent authority with the power to impose sanctions. Instead, its main objective is to improve the efficiency of the Korea Exchange’s operations to hasten the processing of cases. The previous system, where detection, investigation, and sanction phases were fragmented across different organizations, resulted in delays. By consolidating efforts, the plan seeks to eliminate redundant processes and create a more efficient system.

An official from the financial authority noted, "Speeding up the investigation into unfair trading will greatly aid in protecting investors and restoring market credibility," further stating, "It will particularly allow for a more robust and swift reaction to significant issues such as stock price manipulation."