Lee Hae-rin is a City Desk reporter at The Korea Times, covering social issues, tourism and taekwondo. She is passionate about speaking up for the rights of minorities, including women, LGBTQ+, people with disabilities and animals as well as discovering the latest makgeolli trend in town. Feel free to reach her at lhr@koreatimes.co.kr.
Korea launches 1st direct probe into stock manipulation by TV staff
Financial Supervisory Service headquarters in Seoul / Korea Times file
By Lee Hae-rin
Korea’s financial regulator has launched an unprecedented probe into allegations of stock manipulation involving employees of Maeil Business TV, marking the first case initiated directly by its special judicial police.
According to financial investment industry sources, the Financial Supervisory Service’s (FSS) Capital Markets Special Judicial Police, conducted a search and seizure on the broadcaster’s headquarters in Seoul, Wednesday, securing relevant materials.
Authorities suspect that three individuals — a producer, a program host and a guest contributor — purchased stocks using nonpublic information obtained through their work. They are believed to have promoted the same stocks on air, driving up prices before selling them for profit. The FSS estimates the illicit gains exceeded 1 billion won ($720,000).
The case is notable as the first investigation launched independently by the FSS without a prior referral from the Securities and Futures Commission. The move follows expanded authority granted to the agency earlier this year, allowing it to initiate probes directly when there is a high risk of evidence destruction or clear indications of criminal activity.
Financial authorities have recently signaled a broader crackdown on unfair trading practices involving so-called “finfluencers,” or financial influencers, who leverage media platforms to sway retail investors.
In previous cases, individuals were found to have purchased stocks in advance and recommended them through paid channels or broadcasts before selling at a profit.
President Lee Jae Myung, currently in Turkey to attend the NATO summit, responded swiftly to the news, underscoring the government’s zero-tolerance stance.
“Fairness in the capital market is a value that cannot be compromised,” Lee wrote on X. “Stock manipulation will inevitably be caught by the triple net of the FSS, police and prosecutors,” he added, using the hashtag “stock manipulation means financial ruin.”