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

The typical duration for probing unfair trading activities in the stock market is projected to decrease from the current 12 to 15 months period to an estimated 6 to 7 months.

This initiative arises from President Lee Jae-myung's recent directive to eliminate unfair trading practices, which led financial authorities to form the 'Stock Price Manipulation Prevention Joint Response Team.'

During a press conference 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 under the Financial Services Commission, announced plans for a coordinated response team. This team will operate with the Financial Services Commission, Financial Supervisory Service, and Korea Exchange collaborating in a unified space within the exchange.

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Although the joint response team lacks direct sanctioning power, its primary goal is to improve the processing efficiency of cases handled by the Korea Exchange. Previously, the steps of detection, investigation, and sanctioning were spread across various institutions, leading to delays. The new strategy aims to streamline these stages through collective efforts, facilitating a more rapid response system.

A representative from the financial authority elaborated that expediting the investigation process for unfair trading will play a crucial role in enhancing investor protection and rebuilding market trust. They noted that this would particularly enable a more robust and faster reaction to significant issues, such as stock price manipulation.