South Korea Enforces One-Strike-Out Rule Against Illegal Stock Trading

South Korea is implementing comprehensive reforms to enhance the integrity of its stock market, including the introduction of a 'one-strike-out' rule targeting illegal trading practices such as stock price manipulation and illegal short-selling. The Financial Services Commission, Financial Supervisory Service, and Korea Exchange have formed a joint task force to enable real-time monitoring and swift investigations, with penalties including fines up to twice the illicit gains and permanent bans from the capital market. This crackdown follows President Lee Jae Myung's call for market reform and his vision to usher in a 'KOSPI 5,000 era,' aiming to boost investor confidence and attract more foreign capital. The government also plans to tighten listing criteria and impose the highest fines on serious short-selling violations, including business suspensions and trading restrictions. Since President Lee's recent election, the Korea Composite Stock Price Index has rallied above 3,000 points, reflecting optimism about political stability and market-friendly policies. These measures are expected to improve market transparency and position South Korea as a leader in market regulation globally.