South Korea’s financial authorities, including the Financial Services Commission (FSC) and Financial Supervisory Service (FSS), have strengthened market surveillance and investigations targeting finfluencers—individuals who use SNS and stock broadcasts to influence investment decisions. The move responds to rising concerns about unfair trading practices, such as front-running and spreading false information, especially during periods of heightened market volatility linked to international events like Middle East tensions. Finfluencers have increasingly leveraged platforms like Telegram and YouTube to provide financial advice and stock recommendations, sometimes resulting in investor losses and manipulation of stock prices. Authorities have already detected and acted upon multiple cases, reinforcing their commitment to protecting market integrity.
The policy impacts finfluencers, investors, and listed companies. Finfluencers who recommend stocks without disclosing their interests or who spread false rumors may face criminal penalties, including imprisonment and heavy fines. Investors are warned against blindly following finfluencer advice, as participation in unfair trading can result in significant financial losses or legal consequences. Companies whose management colludes with finfluencers to spread false business information are also under scrutiny. The FSC, FSS, and Korea Exchange are collaborating to share information and enhance investigative capacity.
A concentrated reporting period for unfair trading began on March 23, 2026, and will be flexibly operated based on market conditions. During this period, authorities will closely analyze all reports and immediately launch investigations when credible evidence is found. Whistleblowers who provide material evidence supporting unfair trading allegations may receive rewards of up to 30% of illicit gains and confiscated assets, with no upper limit. The authorities have already fast-tracked several cases, including those involving Telegram stock channels and securities broadcast experts, forwarding them to prosecutors for further action.
Investors should be cautious of stock recommendations where the advisor’s interests are not disclosed or where false information is spread, as these may constitute unfair trading. Blindly following finfluencer advice can lead to losses from sudden price drops. Participating in or inadvertently aiding unfair trading may result in criminal prosecution. Frequently asked questions include: How can unfair trading be reported? Reports can be submitted via the FSC, FSS, or Korea Exchange websites. What penalties apply for unfair trading? Offenders may face at least one year of imprisonment or fines four to six times the illicit gains.
South Korea’s financial authorities are taking decisive action against finfluencer-driven unfair trading, especially as market volatility increases due to global events. The policy targets those who use SNS and stock broadcasts to manipulate prices or spread false information, with enhanced surveillance and immediate investigations during a new reporting period. Whistleblower incentives and inter-agency cooperation are key features. Investors should remain vigilant and avoid participating in or following unverified advice, as legal penalties are severe and enforcement is expected to be strict.