FSC Chairman Lee Eok-won visited the Joint Response Team against stock manipulation office after an anniversary meeting on the 8th, personally shaking hands with staff and providing pizza. The visit came as South Korea's financial authorities intensify their crackdown on stock manipulation, with the team marking its first anniversary since launching last year in July. Lee's gesture aimed to boost morale among frontline investigators following recent policy measures including the removal of reward caps for insider tipoffs and expanded enforcement powers for the joint task force.
Lee Eok-won Visits Joint Response Team Office After Anniversary Meeting
According to financial authorities on the 10th, Chairman Lee visited the Joint Response Team office in Yeouido after the 'First Anniversary Performance Review Meeting on Stock Manipulation Eradication Joint Response Team' concluded on the 8th. The inspection originally scheduled for 11 a.m. was delayed as the meeting ran longer than expected, but Lee shook hands with each of the approximately 100 staff members dispatched from the Financial Services Commission, Financial Supervisory Service, and Korea Exchange. During lunch, the FSC secretariat arranged pizza worth approximately 1 million won for the staff. A Joint Response Team official stated that it is uncommon for the chairman to personally visit the office, greet each staff member individually, and provide meals, adding that staff interpreted the gesture as encouragement for those working hard in the field.
FSC Removes 30 Billion Won Cap on Stock Manipulation Tipoff Rewards
Chairman Lee has prioritized activating insider reporting as a core task since early this year, stating that authorities would strengthen incentives for voluntary reporting by insiders, whom stock manipulation rings fear most. From the second half of the year, the existing 30 billion won cap on tipoff rewards was removed. The system now allows payment of up to 30% of detected and recovered illicit gains as rewards, and permits advance payment of 10% of the expected reward amount (maximum 100 million won) even before illicit gains are recovered.
President Lee Jae-myung Posts Anti-Manipulation Message on SNS
The government's stance on eradicating stock manipulation has become increasingly clear. President Lee Jae-myung posted on social media on the 8th that "fairness in capital markets is a value we cannot abandon" and that "stock manipulation will inevitably be caught in the triple net of the Financial Supervisory Service, police, and prosecution." He attached the hashtag 'stock manipulation leads to ruin' and shared an article about the FSS Capital Market Special Judicial Police's search and seizure operation on front-running charges. On the same day, the FSC held the Joint Response Team's first anniversary performance review meeting and announced measures to strengthen the team's authority, including new powers to request communication fact verification data, expanded scope for principal confiscation and追징, and introduction of AI-based case analysis systems.
Joint Response Team Expands to 90 Members, Refers 10 Major Cases
The Joint Response Team has expanded from its initial 36 members at launch last year in July to approximately 90 members, with participation from the FSC, FSS, prosecution, and Korea Exchange. Over the past year, the team detected 10 major unfair trading cases including super-rich long-term market manipulation, insider trading by senior securities firm executives, and use of undisclosed information by listed company disclosure officers, referring them to prosecution. Recognition efforts extended beyond the Joint Response Team. The first recipient of the 'FSC Person Award' introduced this year was Lee Yong-jun, an official from the Capital Markets Division, who received 10 million won in recognition of his contributions to capital market structural improvement, corporate value-up policies, delisting system reform, and unfair trading system improvements. A financial industry official noted that after declaring war on stock manipulation, authorities are not only revising systems but also boosting morale in organizations handling actual cases, adding that while it may seem like small encouragement in the field, the symbolism that 'the government trusts us' carries significant weight for the organization.
FAQ
What did FSC Chairman Lee Eok-won do on the 8th?
Chairman Lee Eok-won visited the Joint Response Team against stock manipulation office after an anniversary meeting on the 8th, personally shaking hands with approximately 100 staff members and providing pizza worth approximately 1 million won through the FSC secretariat.
How did the FSC change the stock manipulation tipoff reward system?
The FSC removed the previous 30 billion won cap on tipoff rewards and now allows payment of up to 30% of detected and recovered illicit gains as rewards, with advance payment of 10% of expected rewards (maximum 100 million won) permitted even before illicit gains are recovered.
How many cases has the Joint Response Team handled since launch?
Since launching last year in July with 36 members and expanding to approximately 90 members, the Joint Response Team detected 10 major unfair trading cases over the past year and referred them to prosecution.
