Strengthened Investigation Power
The Capital Market Investigation Unit of the Financial Services Commission is going to include stock price manipulation into the scope of its unfair trading investigation in the second half of next year. It is also planning to be equipped with digital forensics equipment so that unfair trading can be detected early.
At present, the scope of the investigation by the Capital Market Investigation Unit includes the use of undisclosed information and insider trading whereas stock price manipulation is covered by the Financial Supervisory Service. The Financial Supervisory Service, however, is not allowed to conduct coercive inspection and, as such, is limited in terms of timely inspection. The Capital Market Investigation Unit has relied on the other agencies including the Financial Supervisory Service with regard to the use of data systems associated with the matter as well, which has resulted in the same problem.
The Capital Market Investigation Unit’s unfair trading investigation system is to calculate the size of unfair profits by analyzing suspects’ financial transaction information and turning past stock price manipulation cases into a database so that it can be utilized in inspections in the future.
Scheduled to be put into operation in the second half of next year, the system is to take the place of the Supreme Prosecutor’s Office’s system. This replacement is likely to result in a much faster digital analysis.