South Korean authorities probe journalist-linked stock manipulation

South Korean financial authorities are investigating a stock front-running scheme involving a CEO of a listed entertainment agency and several journalists. The Financial Supervisory Service (FSS) special judicial police conducted searches at the homes and offices of journalists suspected of participating in the scheme.

The suspects allegedly used “featured stock” articles—reports that highlight stocks with significant market interest or positive news—to manipulate prices. By purchasing stocks before the articles were published and selling them once the news drove prices up, the group is suspected of generating approximately 3 billion won in illicit profits across roughly 300 stocks.

This investigation is the final of four major cases involving journalists and front-running. Previous cases referred to prosecutors have already uncovered over 20 billion won in illicit gains. When combined with the current investigation, the total estimated illicit profit from these related media-driven manipulation schemes reaches approximately 23 billion won.