Prosecutors indict reporters and accountant in stock front-running scheme
Prosecutors say current and former journalists working with an accountant made 8.55 billion won ($5.9 million) by buying shares and then publishing favorable articles that lifted stock prices.
A prosecutor announces the results of an illegal trading investigation involving reporters and an accountant at the Seoul Southern District Prosecutors’ Office in southern Seoul on July 29.YONHAP
Former and current reporters and a certified public accountant were indicted for allegedly earning billions of won in illegal profits by buying stocks before publishing favorable news articles that boosted their prices, the Seoul Southern District Prosecutors’ Office said Wednesday.
The prosecution has indicted eight people, including former and current business reporters and a public accountant, on charges of violating the Financial Investment Services and Capital Markets Act.
The defendants allegedly profited from front-running trades tied to the publication of financial news articles and from exchanging payments in return for the stories. The illicit gains amounted to roughly 8.55 billion won ($5.9 million) in total, according to prosecutors.
Prosecutors had already indicted a current business reporter on July 2 and the accountant on July 6 with detention on suspicion of violating the capital markets act. Law enforcement then slapped additional charges of offering improper benefits in breach of trust and violating the Improper Solicitation and Graft Act on the accountant.
The remaining reporters, who had been referred to prosecutors without detention, were indicted on Tuesday on charges including violations of the capital markets act and breach of trust involving the giving and receiving of improper benefits. Two of them face indictment with detention.
The defendants targeted small- and mid-cap stocks with low trading volumes or high price volatility between October 2020 and June 2025. They allegedly purchased the shares before publishing stock articles highlighting those companies. The reporters then published about 1,800 favorable articles that helped drive up share prices before selling their holdings.
“A single story will pay you 300,000 won,” the accountant reportedly said to lure the reporters.
One of the reporters worked for a major daily newspaper, according to prosecutors. In return for publishing the articles, the accountant allegedly paid three reporters about 150 million won, 116 million won and 28 million won, respectively. The reporters are also believed to have moved among several newspaper companies during and after the scheme. The group reportedly worked at more than 10 media organizations in total.
Investigation results of illegal trading involving reporters and an accountant are shown at the Seoul Southern District Prosecutors’ Office in southern Seoul on July 29.YONHAP
Separate from the other defendants who worked as a group, the reporter who was indicted earlier this month is also accused of using their publishing authority to generate illegal trading profits.
The reporter bought shares immediately before publishing featured stock articles they had written and sold them after the reports drove up share prices. Between October 2022 and July 2024, the reporter allegedly earned about 740 million won through trades linked to 340 articles.
“We will respond sternly to actions that disrupt the stock market and do our utmost to restore upright order,” the prosecution said. “We will continue to crack down on financial and securities crimes through close cooperation with agencies including the Financial Supervisory Service.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
