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May 19, 2026 – South Korea –
A former South Korean journalist and a former securities firm employee have been released on bail after being accused of making illegal profits worth approximately 11.2 billion won through stock price manipulation involving favorable news articles.
According to The Asia Business Daily, the Seoul Southern District Court granted bail to the two suspects, identified only as A and B, who had previously been detained and indicted on charges including violations of South Korea’s Capital Markets Act. The court’s Criminal Division 11 approved their release while legal proceedings continue, allowing both men to stand trial without remaining in physical detention.
Prosecutors allege that the scheme involved purchasing shares in targeted companies before publishing positive news articles designed to increase investor interest and drive up stock prices. Once the prices rose, the suspects allegedly sold the shares for substantial profit in what authorities described as a form of “front-running” stock manipulation.
Investigators said the operation continued for nearly eight years, beginning in 2017 and lasting until June 2025. Prosecutors claim the former journalist initially used the names of reporters working at the financial newspaper where he had been employed to publish favorable articles about specific companies. Authorities later alleged that the suspects expanded the operation by using false names and distributing similar reports through other media platforms.
The prosecution argued that the articles were strategically timed to influence market activity and artificially inflate stock values. Officials believe the suspects collectively earned around 11.2 billion won through repeated trading linked to the publication of promotional reports.
Both defendants have denied the accusations. Their legal representatives reportedly dispute the prosecution’s interpretation of the trades and deny that the published articles were part of an organized manipulation scheme.
The case has attracted attention in South Korea because of concerns surrounding market integrity, media ethics, and the potential misuse of journalism to influence financial markets. Financial authorities and prosecutors in the country have increasingly focused on stock manipulation cases involving online promotion, coordinated trading activity, and misleading information targeting retail investors.
The next court hearing in the case is scheduled for June 1 as prosecutors continue presenting evidence related to the alleged scheme and financial transactions connected to the suspects.
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