SNS stock scams face clampdown

Financial authorities plan to bolster supervision of unfair stock trading practices via social networking services.

The regulatory policy comes amid groundless rumors that have been rampant lately on social networks including Facebook, Twitter and smartphone applications.

To crack down on cyber-based stock manipulation, the Financial Supervisory Service plans to closely coordinate with the Financial Services Commission and the Korea Exchange.

An official of the Korea Exchange said the main bourse operator was set to establish a system that automatically detects baseless rumors on SNS, which could be misused for stock scams.

The Korea Exchange, which has already formed a task force in charge of oversight of cyberspace activities, seeks to launch a cyber supervision center in the coming weeks.

The Financial Supervisory Service, under its new governor Choi Soo-hyun, plans to take tougher sanctions against stock manipulators.

FSS officials are mapping out details to speed up punishment process from the initial detection of alleged stock rigging.

The regulator also plans to expand its regulatory manpower to crack down on unfair stock trading practices.

Despite a series of disciplinary actions against fraudulent stock traders, FSS data showed that manipulation or irregular insider trading cases had increased in the local market.

By Kim Yon-se ( kys@heraldcorp.com)<ⓒKoreaHerald(www.koreaherald.com)무단전재 및 재배포 금지>