FSS special investigation team to debut in May
Shown above is a scene from the box office hit “Money” released in March. In the film, a Financial Supervisory Service official tracks down a stockbroker suspected of engaging in illegal stock transactions. / Korea Times file
By Kim Bo-eun
A special team of investigators from the Financial Supervisory Service (FSS) will launch a crackdown on unlawful market practices starting next month, the financial watchdog said Monday.
The FSS said that it has finalized the details of the launch with the Financial Services Commission (FSC), the nation's top financial regulator that oversees the FSS.
The team will be allowed to begin investigations of “market-disturbing” activities without having to seek permission from the FSC, and work directly with the prosecution.
Referred to as a financial police force, the team will consist of 10 FSS officials based at its headquarters on Yeouido, Seoul. The FSS has submitted a final list of the investigators to the FSC for approval.
The special team will focus on looking into irregularities in the capital market, including false corporate disclosures, insider trading and stock price manipulation.
Previously, FSS officials looking into these malpractices had to report to the FSC-affiliated Securities and Futures Commission (SFC), as they had no independent investigative rights. The SFC reviewed the matter and if it decided to seek criminal charges against a suspect, the FSS needed to file a complaint with prosecutors, who then had to request a court order to search and seize the suspect's assets. This slowed down every aspect of the investigation.
Having investigative authority, the team will be able to launch investigations and request warrants to search and seize evidence including viewing communications records, and immediately file a complaint with prosecutors after securing evidence.
The officials will be supervised by a prosecutor who will be based at the FSS.
However, the investigators will only be able to look into serious cases deemed important and urgent. The FSS had requested that the special team's investigations not be subject to such limitations.
“The FSC, FSS and prosecution agreed that the investigators will handle 'fast-track' cases,” an FSC official said.
The FSC will soon report the plan to the National Assembly.