FSS Special Judicial Police Search and Seize Homes and Offices of Active Reporters Suspected of Front-Running

The Capital Market Special Judicial Police of the Financial Supervisory Service have launched a compulsory investigation targeting reporters with press access to the FSS who are suspected of engaging in front-running.

On the morning of September 9, the special judicial police conducted a search and seizure of the homes and media offices of Reporter A and other individuals affiliated with Company C, seizing laptops and related materials. They also searched the designated area for that media outlet in the press room of the FSS, sealing it off afterward. It is highly unusual for a search and seizure to be conducted inside the press room due to a front-running case involving a reporter covering the FSS.

Reporter A and others are suspected of writing favorable articles about stocks they had purchased in advance, then selling the stocks after the price increased, thereby earning illicit gains of several hundred million won per person and tens of billions of won in total. The special judicial police believe that the scheme involved the CEO of a listed small- to mid-sized entertainment agency, operators of unregistered investment advisory services, and other parties who enlisted active reporters to secure these illegal profits.

The investigation initially targeted only a small number of suspects, but as authorities tracked accounts and transaction records, additional suspects were identified, leading to an expansion of the inquiry. The special judicial police plan to summon the reporters involved to question them regarding the circumstances of the front-running and whether there was any collusion.

The special judicial police have been investigating front-running cases involving both former and current reporters since last year, and suspects were referred to the prosecutor’s office in November of last year and June of this year. This case is said to be the last of four reporter-related front-running cases that has not yet been handed over to the prosecution.

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