Seoul: South Korea's financial regulator announced Wednesday that tougher measures will be implemented to combat unfair and illegal stock trading practices in the local stock market. The Financial Services Commission (FSC) revealed that revised enforcement decrees to the Capital Market Act and other regulations will come into effect starting October. Under the new regulations, individuals caught engaging in illegal stock trading will face fines up to twice the amount of their unjust gains, and the market monitoring system will shift focus from trading accounts to individuals.
According to Yonhap News Agency, the current account-based monitoring system has resulted in excessive oversight, making it challenging to identify connections between accounts held by the same individual. To address this, stock manipulators will be prohibited from participating in the capital market for up to five years. This includes restrictions on trading financial investment products and disqualification from serving as executives at listed companies.
Furthermore, major shareholders and executives involved in illegal or unfair trading activities will be publicly identified shortly after a resolution by the Securities and Futures Commission under the financial regulator. These initiatives are part of broader efforts as President Lee Jae Myung has prioritized market reform measures since his election victory in early June.
The measures have coincided with a rally in the benchmark index, the KOSPI, amid expectations of political stability and market-friendly policies. Notably, on June 20, the index surpassed the 3,000-point mark for the first time in more than three years and has since remained around the 3,100 level, closing at 3,169.94 on Tuesday.