Six journalists among eight indicted in South Korea stock manipulation case
Prosecutors allege the accused made over 9 billion won by publishing favourable articles to boost share prices before selling holdings
South Korean prosecutors have indicted eight people, including six business journalists, for allegedly orchestrating a stock price manipulation scheme that generated more than 9 billion won (approximately $6.19 million) in illegal profits.
The Seoul Southern District Prosecutors Office said the accused allegedly bought thinly traded or highly volatile shares before publishing favourable news reports designed to drive up stock prices. They then sold the shares at inflated prices, securing substantial gains.
According to prosecutors, an accountant, an investor and five reporters collectively earned around 8.55 billion won through the scheme by publishing nearly 1,800 articles between October 2020 and June 2025.
Investigators alleged that the journalists agreed to participate in exchange for payments of 300,000 won per article. Three of the reporters are accused of earning approximately 150 million won, 160 million won and 28 million won respectively through the arrangement.
In a separate case linked to the investigation, another business reporter was indicted for allegedly making around 740 million won by publishing approximately 340 articles between October 2022 and July 2024 while abusing editorial authority to influence the market.
Prosecutors said they would pursue all proceeds obtained through the alleged scheme.
"We will respond sternly to acts that disrupt the stock market," the prosecution said, adding that it would seek to trace and confiscate all criminal assets connected to the case.
Separately, South Korea's top financial regulator signalled that further measures could be introduced to curb speculation linked to single-stock leveraged exchange-traded funds (ETFs), which authorities believe have contributed to heightened market volatility.
Financial Services Commission Chairman Lee Eog-weon told parliament that the regulator is considering additional steps to reduce demand for the recently introduced investment products.
The government has already announced stricter rules, including a higher minimum cash deposit requirement for investments in single-stock leveraged ETFs. The new requirement is due to take effect on Friday after being brought forward by several weeks in an effort to stabilise markets and strengthen investor protection amid ongoing volatility.
With IANS inputs