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

The expected timeline for probing unfair trading activities in the stock market is set to decrease from the current average of 12 to 15 months to between 6 and 7 months.

This change follows a directive from President Lee Jae-myung a month ago aimed at eliminating unfair trading practices, leading to the creation of the 'Joint Response Team for Eradicating Stock Price Manipulation' by financial authorities.

During a 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 at the Financial Services Commission, announced the plan to establish a joint response team involving the Financial Services Commission, Financial Supervisory Service, and the Korea Exchange, all operating within the exchange.

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The joint response team will not possess independent sanctioning authority but aims to enhance efficiency in case handling by the Korea Exchange. Previously, the distinct stages of detection, investigation, and sanction were managed by separate institutions, leading to delays. The new plan seeks to streamline processes through collaborative operations and establish a faster system.

A representative from the financial authorities stated that expediting the investigation process for unfair trading is expected to substantially aid in protecting investors and restoring market confidence. Additionally, it will provide more robust and quicker responses to significant incidents such as stock price manipulation.