FIU Detects Clues to Trillion-Won Stock Price Manipulation... Shares Case of Investigative Support with International Community

Presentation of Exemplary Case at Egmont Group Annual Meeting
Discussions on AI-Driven Money Laundering Response and Strengthening International Cooperation

The Financial Intelligence Unit (FIU) under the Financial Services Commission garnered attention from the international community by introducing its case of supporting the investigation into the largest stock price manipulation incident in Korean history, which generated approximately 1 trillion won in illegal profits.

According to the financial authorities on July 13, the FIU attended the "2026 Egmont Group Annual Meeting" held in Baku, Azerbaijan from the 5th to the 10th, where it discussed trends in cross-border crimes and money laundering using artificial intelligence (AI), as well as strategies for public-private cooperation.

At the request of the Egmont Secretariat, the FIU presented an exemplary case of investigative support under the theme "The 2023 Stock Market Crash and the Role of the Korean FIU." This case involved 56 participants over three years and four months and is the largest organized stock price manipulation incident in Korea, having generated approximately 924.9 billion won in illegal profits.

The criminal organization used so-called "investor-disguised mobile trading" methods, opening mobile phones under investors' names and conducting transactions near the investors’ residences. Additionally, they exploited Contracts for Difference (CFD) to evade conventional short-term price volatility monitoring, IP-based market surveillance systems, and large-shareholding reporting obligations.

In response, the FIU went beyond simple account-based monitoring by tracking extensive flows of funds and conducting a multidimensional analysis of hundreds of Suspicious Transaction Reports (STRs). Based on these efforts, the FIU promptly provided the joint investigation team with numerous in-depth analysis reports and STRs in a short period, creating a decisive breakthrough for transitioning to a compulsory investigation.

The FIU stated that this case received high praise as it demonstrated to the international community the importance of the FIU’s precise data analysis and collaboration with investigative agencies in responding to increasingly sophisticated financial market crimes.

The Financial Intelligence Unit (FIU) under the Financial Services Commission delivered a presentation titled "The 2023 Stock Market Crash and the Role of the Korean FIU" at the Egmont Group Annual Meeting Asia-Pacific Regional Group conference held on the 7th in Baku, Azerbaijan. Provided by FIU.

Additionally, the FIU noted that it gained insights from the conference by sharing the latest trends in money laundering and terrorist financing, and by deriving policy implications that can be applied to key initiatives, such as implementing a preemptive suspicious account transaction suspension system, building an AI review and analysis system, and responding to international mutual evaluations.

Kang Sungki, Chief of the Review and Analysis Division at the FIU, stated, "We will continue to actively participate in various international platforms, including the Egmont Group Annual Meeting and working-level meetings, to expand the exchange of information and sharing of experiences with FIUs from different countries. With the principle that borderless money laundering requires borderless cooperation, we will respond firmly and strictly to global illegal financial networks."

The Egmont Group, established in June 1995, is an international organization aimed at promoting international cooperation, such as the exchange of financial transaction information for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) purposes among financial intelligence units of each country, and currently involves 182 countries worldwide.

This content was produced with the assistance of AI translation services.