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Crackdown on Indiscriminate Election Stocks

17:07 January 11, 2017 replay time01:43

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[Anchor]

As there is an increased likelihood of an early presidential election due to impeachment, the stock prices of companies even remotely related to presidential candidates are being shaken.

Financial authorities set out to prevent investor losses from "election-themed stocks," or those that repeatedly rise and fall following the actions of particular figures.

Kim Jong-sung has more.

[Reporter]

Various polls were released in the New Year, shaking up the stock prices of companies related to the figures expected to run for president.

The stocks of companies described as being themed after a particular person are being introduced in online communities.

However, more often than not, their prices are rising and falling by more than 10%, without any other reasons. Financial authorities predict that there must be groups who take advantage of the mob mentality to disseminate rumors and take profit.

Having begun a six-month operation of a special investigation team on politically themed stocks this week, the authorities plan to not only assign more personnel but also extend the operation if need be.

Recently, there has been a rise in cases of entrusting bank accounts to unauthorized investing companies to profit from sales of themed stocks. Experts advise that caution is needed, as this could amount to a securities crime.

<Cho Nam-hee / President of Financial Consumer Agency> "The same goes for general deposit accounts; lending equity accounts or your name to have others manage them is an illegal act. If abused criminally, the original account owner must bear the legal responsibilities…."

Financial authorities revealed that informants of unfair acts such as stock manipulation will be rewarded a maximum of two billion won, depending on the gravity of the issue. The identity of the informant will be strictly confidential.

Kim Jong-sung reporting for Yonhap News TV.

Yonhap News TV: 02-398-4441 (Inquiry on article) 4409 (Report), KakaoTalk/LINE jebo23

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