Financial Supervisory Service to Strengthen Measures Against Unfair Trading and Accounting Fraud in Capital Markets
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hoondork1977@alphabiz.co.kr | 2025-02-10 10:48:29
Lee Bok-hyun, Financial Supervisory Service. (Photo: Yonhap News)
[Alpha Biz= Paul Lee] The Financial Supervisory Service (FSS) will focus on eradicating unfair trading and accounting fraud that threaten the capital markets this year. The FSS plans to strengthen scrutiny during listing, delisting, and capital increase processes.
On Monday, the FSS announced its "2025 Work Plan," stating that it will enhance collaboration between the public disclosure, investigation, and accounting departments to respond more closely to unfair and illegal trading in the capital markets.
First, it will promote qualitative growth in the stock market by improving listing systems, including entry and exit regulations, and increase shareholder protection by strengthening the review of securities reports for capital increases, tender offers, and mergers.
Additionally, the FSS plans to strengthen investigations into potential unfair trading identified during public disclosure reviews and crack down on fraudulent trading by companies attempting to avoid delisting or designation as a management-listed company.
It will also intensify investigations into the illegal pursuit of private profits by expert groups exploiting information asymmetry in corporate events such as tender offers and IPOs. If unfair trading or illegal practices are found among habitual offenders or expert groups, the FSS will conduct swift investigations and take strict measures.
The FSS will also carefully review accounting audits for struggling companies and IPO candidates. It plans to expand its review and inspection scope for such companies this year, based on the results of audits conducted on struggling companies in the previous year.
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