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South Korean Stock Market Sees Record-High Reports of Unfair Trading Practices
Commercial Services · Financial Publishing/Services · yonhap_finance · 2026-09-08
Reports of suspected unfair trading in the South Korean stock market hit a record 921 cases through July, yet actual bounty payouts remain remarkably low.
What Happened
Surge in Unfair Trading Reports: Reports of suspected unfair trading activities in the South Korean stock market reached an all-time high of 921 cases in the first seven months of this year. Market manipulation allegations accounted for approximately 70% of these reports, highlighting growing investor concern over market integrity.
Market Trends and Categories: The KOSDAQ market, which has a high concentration of retail investors, saw the most significant increase, accounting for 64% of all reports. While reports regarding the misuse of non-public information rose slightly, cases involving fraudulent transactions actually declined during the same period.
Discrepancy in Bounty Payouts: Despite the record number of reports, the actual issuance of financial rewards to whistleblowers has been minimal. Only two rewards totaling 1.15 million KRW were paid out through July, raising questions about the effectiveness of the current incentive structure.
Regulatory Response and Outlook: Financial authorities have recently overhauled the reward system, including the removal of the 3 billion KRW cap, to encourage more reporting. However, lawmakers are urging regulators to move beyond simple intake and strengthen actual investigation and enforcement mechanisms to protect retail investors.