FSS chief vows to eradicate unfair trading in financial markets

김나영 / 2023-06-01 17:50:22

FSS chief-news conference

▲ Lee Bok-hyun, chief of the Financial Supervisory Service, speaks at a conference held in western Seoul on June 1, 2023. (Yonhap)

FSS chief-news conference

FSS chief vows to eradicate unfair trading in financial markets

SEOUL, June 1 (Yonhap) -- The chief of the state financial regulator on Thursday vowed to eradicate unfair trading practices to increase the credibility of the financial markets.

Lee Bok-hyun, the head of the Financial Supervisory Service (FSS), made the remarks at a news conference marking his first anniversary since taking office amid increased public attention to an alleged stock manipulation case that recently rocked South Korea's stock market.

"Financial markets are like a sand castle without fairness and credibility ... I will work hard to root out unfair practices in the capital market and improve the stability of the financial markets," Lee said, referring to financial frauds, illegal short stock sellings and others.

"The credibility of the capital market can be heightened when those who violated laws or misappropriated opportunities get penalties," Lee added, noting the efforts are needed for the Korean stock market to advance.

Earlier this week, the FSS said it will operate a special investigation unit to crack down on illicit financial practices starting Thursday as part of efforts to prevent stock manipulation.

The measures came as a result of a suspected stock manipulation case where the stock prices of nine companies, including energy firm Samchully Co. and Seoul City Gas Co. collapsed in April, shaking up local financial markets.

The FSS chief said it is difficult to assess the timing of the resumption of short stock selling, considering financial uncertainties deriving from high interest rates.

Lee said the financial regulators remain cautious on cryptocurrency, as the country has yet to legalize virtual currencies, but he added the FSS will receive damage reports starting Thursday through the end of this year to respond to raging coin-related fraud cases.

Meanwhile, Lee also vowed to improve South Korean financial markets' competitiveness on a global level by helping financial companies expand business abroad.

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