SEOUL, May 23 (Korea Bizwire) — Stock manipulators will face confiscations of not only illegal gains but also their seed money under a revised capital market law that seeks to raise the integrity of the market.
The National Assembly on Friday approved a partial revision to the Financial Investment Services and Capital Markets Act aimed at improving investor protection and preventing market manipulation.
The updated law newly allows the confiscation of the assets used or offered to be used in stock manipulation schemes.
Under the previous law, only the confiscation of the profits gleaned through stock manipulation was compulsory. Decisions on whether to forfeit the seed money involving manipulation schemes were left to the courts’ discretion.
The revised law also newly codifies the punishment of lenders of transaction accounts for financial investment products, as well as those who broker or solicit rentals of such accounts.
The punishment is up to five years in prison or a fine not exceeding 200 million won (US$177,478).