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

There will be a notable reduction in the investigation timelines for cases of inequitable trading in the stock market, scaling down from the previous average of 12-15 months to approximately 6-7 months.

This change stems from a directive issued by President Lee Jae-myung a month prior, calling for the "elimination of unfair trading." In response, the financial authorities have initiated the formation of a collaborative response unit termed ‘주가조작 근절 합동대응단’.

During a press briefing at the Korea Exchange in Yeouido, Seoul, on the morning of the 9th, Lee Yoon-soo, a standing member of the Securities and Futures Commission of the Financial Services Commission, announced, "We intend to establish a joint response team that will integrate the efforts of the Financial Services Commission, Financial Supervisory Service, and the Korea Exchange by having them work together within the exchange."

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The joint response team won’t possess independent sanctioning power, but its primary goal is to improve the efficiency of case handling by the Korea Exchange. Previously, the stages of detection, investigation, and sanction were managed by different entities, leading to delays. This initiative aims to streamline processes, minimize redundancies, and create a swift operational system.

An official from the financial authority explained that expediting the investigation of unfair trading practices will significantly enhance investor protection and aid in restoring market trust. This means that there will be a more robust and quicker response to critical incidents, such as stock price manipulation.