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Tougher measures to be introduced against illegal stock trading

Published: 23 Jul. 2025, 16:15 Updated: 23 Jul. 2025, 19:10

Secretary General Kwon Dae-young of the Financial Services Commission speaks during a press briefing on May 14. [NEWS1]

Korea's financial regulator said Wednesday that tougher measures will be taken against unfair, illegal stock trading as part of efforts to root out such trading practices in the local stock market.

The Financial Services Commission (FSC) said revised enforcement decrees to the Capital Market Act and others will take effect starting October, under which those caught for illegal stock trading will face fines of up to twice the amount of their unjust gains, while the market monitoring system will be based on individuals rather than trading accounts.

The current account-based system results in excessive monitoring and makes it difficult to detect links between accounts held by the same individual.

Stock manipulators will be barred from the capital market for up to five years through restrictions on trading financial investment products and disqualification from serving as executives at listed companies.

Major shareholders and executives involved in illegal or unfair trading cases will be publicly named shortly after a resolution by the Securities and Futures Commission under the financial regulator.

The measures come as President Lee Jae Myung has called for market reform measures.

Since Lee's election victory in early June, the benchmark index, the Kospi, has rallied amid hopes for political stability and market-friendly policies.

On June 20, the index surpassed the 3,000-point mark for the first time in more than three years and has since hovered around the 3,100 level. On Tuesday, it closed at 3,169.94.

Yonhap