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

The current timeframe for probing unfair trading activities within the stock market, which generally spans 12 to 15 months, is set to be curtailed to a more efficient 6 to 7 months.

This decisive action is a direct result of a mandate issued by President Lee Jae-myung about a month earlier, aimed at "eliminating unfair trading practices." Responding to this directive, the financial authorities have mobilized an initiative entitled ‘주가조작 근절 합동대응단’.

During a press conference convened 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 under the Financial Services Commission, announced, "Our plan involves establishing a joint response team where the Financial Services Commission, Financial Supervisory Service, and the Korea Exchange will collaborate under one roof within the exchange."

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While the joint response team does not wield independent sanctioning powers, its primary goal is to augment the capabilities of the Korea Exchange in order to expedite the handling of cases. Historically, the processes of detection, investigation, and sanctioning were fragmented across various institutions, leading to delays. The new strategy seeks to eliminate redundant steps through coordinated operations, thereby setting up an accelerated procedural framework.

An official from the financial authority elucidated that speeding up the investigation of unfair trading practices will play a pivotal role in safeguarding investors and reviving market trust. The official further emphasized that this approach will enable a more robust and swift response to significant events such as stock price manipulation.