Seoul, July 9 || South Korean authorities will implement a "one-strike-out" rule targeting illegal stock trading and establish a joint inspection team that will enable not only real-time monitoring but also the swift investigation of suspected cases when necessary, officials said on Wednesday.
They are part of comprehensive measures announced jointly by the Financial Services Commission (FSC), the Financial Supervisory Service (FSS) and the Korea Exchange (KRX) to tackle illegal stock transactions, which, in turn, will boost the appeal of the local stock market to offshore investors.
"We will enforce a 'one-strike-out' policy against unfair trading practices, such as stock price manipulation, by effectively recovering illegal profits and permanently removing perpetrators from the capital market," the FSS said in a release, reports news agency.
Under the new enforcement scheme, the financial authorities will promptly initiate payment suspension procedures when accounts used for illegal activities are identified during the investigation stage, in order to prevent suspects from transferring illicit profits.
Those caught for illegal activities will face fines of up to twice the amount of their unjust gains.
The bold moves come after President Lee Jae Myung called for market reform measures.