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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, November 18 — Korea’s Financial Supervisory Service (FSS) has arrested a former journalist and an accomplice for engaging in a large-scale front-running scheme, in which they purchased shares before publishing market-moving news articles and then sold them for profit once stock prices rose.
The FSS Special Judicial Police said the former reporter, identified as Mr. A, and his associate Mr. B were taken into custody after allegedly manipulating “featured stock” articles—reports highlighting daily market movers—over several years. They reportedly acquired hundreds of stocks in advance and wrote articles portraying them as having major positive catalysts.
Investigators also found evidence that Mr. A paid another journalist to publish similar articles to further inflate share prices. Several reporters are suspected of acting as a coordinated group, releasing related stories at similar times.
The FSS believes the broader scheme, which also involves securities firm employees and other operators, generated illicit gains exceeding KRW 10 billion, and the investigation is being expanded.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
