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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] More than 80 employees of Korea’s Financial Supervisory Service (FSS) violated the Capital Markets Act or internal conduct rules related to financial investment trading over the past five years, according to data submitted to Rep. Kim Nam-geun.
From 2021 to June 2025, 81 violations were recorded, including failures to report stock trading, using multiple securities accounts, and exceeding internal trading limits. Despite the number of violations, only 22 cases were referred to the disciplinary committee, most resulting in the lowest level of action — simple warnings. No suspensions or dismissals were issued.
Under the Capital Markets Act, FSS staff must report investment account openings and quarterly trading details, and are limited to one securities firm and one account. Yet several employees breached these rules, raising concerns about the regulator’s own compliance standards.
The findings come as FSS Governor Lee Chan-jin has urged financial companies to strengthen internal controls. Lawmakers warn that repeated violations within the supervisory agency itself could undermine trust in its regulatory authority.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
