[Alpha Biz=(Chicago) Reporter Kim Jisun] Starting next year, financial authorities will be able to impose fines of up to twice the unfair gains on capital market unfair trade offenders, including stock price manipulation.

The Financial Services Commission said today (25th) that it will announce a revision to the sub-law on the Capital Markets and Financial Investment Business Act.

The Financial Services Commission clearly set the criteria for calculating unfair profits, which were cited as the core of the revision of the Capital Markets Act, in its enforcement ordinance prepared through further discussion with related ministries.

The revised Capital Markets Act clearly stipulates the criteria for calculating unfair profits as the difference by deducting the total cost from the total revenue obtained from the violation, which defines the total revenue and total cost, and stipulates a specific unfair profit calculation method for each type of violation.

In addition to actual profits, the total revenue includes unrealized profits and avoidance losses, and the total cost is defined as expenses in the trading process such as fees and transaction taxes.

The amendment also stipulated specific calculation methods for each type of violation, such as the use of undisclosed important information, price manipulation, and fraudulent transactions.

In addition, even if external factors such as violations, third-party intervention and market factors are inseparably combined, the percentage of market fluctuations will be applied differently in consideration of each impact.

The scope and criteria for the reduction of fines for voluntary reporting have also been specified.

Due to the provision of evidence and sincere cooperation by unfair trade practices, voluntary reporters are allowed to reduce fines by 50 to 100 percent.

However, if you force others to participate in unfair trade practices or engage in unfair trade practices repeatedly, you will be excluded from the exemption.

The Financial Services Commission also decided to impose fines after being informed by the prosecution of the results of its investigation and disposition of suspects of unfair trade in order to prevent overlapping imposition of fines and other penalties.

After the Financial Services Commission notified the prosecution of the charges of unfair trade, or a year later, it allows the prosecution to impose fines even before it is notified by the prosecution of the results of the investigation and disposal.

The legislative notice period is until November 6, and it will go into effect on January 19 next year after going through the legislative review and Cabinet resolution.

 

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