South Korean President Lee Jae Myung Condemns Stock Manipulation After Reporter Probe
Updated (2 articles)
Lee’s X Post Calls Out Manipulation, Warns of Ruin On Feb. 5, President Lee Jae Myung used his X account to denounce stock‑manipulation schemes, citing a recent news report that a joint task force had searched the Korea Economic Daily headquarters and stating “Stock manipulation will lead to total ruin” as part of his ongoing anti‑abuse messaging [1]. He framed the incident as evidence that market abuse can devastate investors and the economy. The post reinforced his recent social‑media campaign targeting illegal market practices.
Joint Task Force Seizes Korea Economic Daily Headquarters The task force conducted a raid on Feb. 5 at the newspaper’s main office, seizing documents and equipment linked to alleged insider‑trading activity by five of its journalists [1]. Authorities allege the reporters purchased specific stocks before publishing articles that praised those companies, then sold the holdings for profit. The operation marks a rare direct intervention against media‑driven market manipulation in South Korea.
Alleged Insider Trades Inflated Stock Prices Before Sale Investigators claim the journalists’ favorable coverage was timed to boost share prices, creating artificial demand that allowed the reporters to sell at inflated values [1]. This pre‑trade and post‑coverage strategy is described as a coordinated effort to manipulate market perception, violating securities law. The alleged profits underscore the potential impact of privileged information when combined with public reporting.
Lee’s Campaign Signals Tighter Oversight of Financial Reporting In recent weeks, Lee has repeatedly pledged stricter enforcement against market abuse, using social platforms to highlight cases like the Korea Economic Daily probe [1]. He called for tighter oversight of financial journalism to prevent similar abuses, emphasizing the need for transparent reporting standards. The president’s statements suggest forthcoming regulatory measures aimed at curbing media‑related stock manipulation.
Timeline
2025 – South Korea receives foreign direct investment pledges totaling $36.05 billion, a 4.3 % increase from 2024, reflecting renewed investor confidence after political uncertainties ease and the country hosts the APEC meeting in Gyeongju [2].
Jan 2026 – South Korean security agencies uncover a hacking group that steals internal data from 21 medical, educational and e‑commerce organisations and sells it online, prompting the Ministry of Science and ICT and the Korea Internet & Security Agency to warn firms to strengthen safeguards [2].
Jan 2026 – President Lee Jae Myung tells Chinese President Xi Jinping, during his state visit to Beijing and later in Shanghai, that he asks China to mediate on the Korean Peninsula, including North Korea’s nuclear issue, seeking Beijing’s influence to stabilise regional security [2].
Jan 2026 – The KOSPI closes at a fresh all‑time high of 4,551.06 points after briefly topping 4,600, driven by a rally in technology and automobile stocks, signalling strong investor appetite for domestic exporters despite a weakening won [2].
Jan 2026 – South Korea imports 2.24 million fresh eggs from the United States to ease domestic price pressure caused by an avian‑influenza outbreak, with the Korea Agro‑Fisheries & Food Trade Corp. distributing the eggs to supermarkets and suppliers [2].
Feb 5 2026 – A joint task force conducts a search and seizure at the Korea Economic Daily headquarters, targeting five journalists suspected of buying stocks before publishing favourable articles and then profiting from the price rise [1].
Feb 5 2026 – Authorities allege the five Korea Economic Daily reporters engage in pre‑trade and positive coverage to inflate share prices, a practice that violates securities law and highlights the media’s capacity to sway market perception [1].
Feb 5 2026 – President Lee Jae Myung posts on X, “Stock manipulation will lead to total ruin,” reinforcing his anti‑manipulation stance and extending his recent social‑media campaign demanding stricter enforcement against market abuse [1].