Stock swindlers favor the KosdaqThe majority of unfair stock trading and disclosure violation cases occur at the Kosdaq market, the Financial Supervisory Service said yesterday. The agency also said it would strengthen sanctions against repeat violators and step up warnings over shares associated with unfair trading.
Despite a decrease in the number of unfair stock trades and disclosure-related violations, the proportion of these cases occurring at the secondary Kosdaq market increased. The number of unfair trading cases fell to 107 in 2006 from 180 in 2005, and the number of disclosure violations dropped to 858 in 2006 from 1,192 in 2005. However, the percentage of unfair trading cases taking place at the Kosdaq jumped to 82 percent in 2006 from 54 percent in 2005, and the portion of disclosure violations rose to 69 percent from 53 percent.
“There are more stock price manipulations, and the disclosure system is not well established at the Kosdaq market,” said Jeong Wan-gyu, an employee at the agency.
The agency said repeat offenders involved in stock price manipulations account for 15 percent of all offenders. In reaction to this, the agency said it would increase sanctions against those who manipulate stock prices, especially repeat offenders. The agency said it would also provide education on disclosure rules to companies listed on the Kosdaq.
“The prevention efforts on suspected issues have been effective in precluding unfair trading,” Jeong said.
By Limb Jae-un Staff Writer [firstname.lastname@example.org]