South Korea moves to tighten market surveillance, raise fines for unfair trading
( July 23, 2025, 06:23 GMT | Official Statement) -- MLex Summary: South Korea’s financial regulator has announced legislative amendments to strengthen early response to unfair trading and improve market oversight. The Financial Services Commission said the revision to the decree of the Financial Investment Services and Capital Markets Act would allow the Korea Exchange to shift from account-based to individual-based monitoring by processing pseudonymized resident registration numbers, enabling faster detection of suspicious activity. Related amendments to the capital market investigation rules would allow fines for unfair trading to exceed the amount of illicit gains, with base fines set at 100 to 200 percent for insider trading, price manipulation and fraudulent transactions, and at 100 to 150 percent for market disruption acts. Fine ratios for disclosure violations will also rise to 40 to 100 percent of the legal ceiling, with the same range applied to controlling executives. Misuse of non-public information by financial firm employees will trigger stricter sanctions, including higher fines and extended bans on trading or executive roles.The statement, in Korean, is attached....
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