The Korea Exchange (KRX) declared on Monday that it will be implementing a set of measures to increase its capacity to tackle unfair stock trading, which has been on the rise this year.
The new guidelines will allow the KRX to monitor and detect mid- to long-term stock manipulation cases, similar to the one which saw a group of members of an online trading community allegedly making 700 billion won (US$524.4 million) by manipulating the stock prices of eight companies listed on the main KOSPI and the secondary KOSDAQ indexes from May 2019 to April of this year.
Previously, the KRX only had regulations in place to address alleged stock manipulation cases that occurred within a period of 100 days, as most cases take place in a short period of time.
Additionally, the KRX’s alert system will be improved to inform investors of stocks that present irregular movement patterns over the long term.
The KRX also plans to share information about suspected unfair trading cases with other financial authorities in the early stages of investigation and strengthen cooperation with them.
The KRX plans to begin enforcing the measures later this year.