Ten Illegal Forex Traders Charged by the Prosecution

The number of illegal foreign exchange traders prosecuted by the Financial Supervisory Board (FSB) has increased to 124. Among the cases, some 10 premeditated and large-scale cases are expected to be charged by the prosecution.

FSB International Affairs Director Roh Tae-shik said on September 8, “Our investigation has newly discovered 80 illegal forex traders (corporate traders included),” and revealed, “Including the 44 suspects prosecuted by joint investigation with the National Tax Service (NTS) and Korea Customs Service (KCS), we have identified a total of 124 individuals so far.”

The additional 80 suspects with illicit foreign exchange transaction charges allegedly invested in real estate or companies in the U.S. and China or took out loans in those countries without reporting to Bank of Korea or other designated banks.

The FSB has reportedly confirmed their charges through annual regular audits on 19 banks.

The disciplinary measures of 124 suspects and the issue of notification to the related agencies will be passed to the FSB’s Review and Enforcement Commission to be determined in the general meeting of the Financial Supervisory Service on September 24.

Director Roh said, “Once the disciplinary measures are determined, the suspects will not be able to engage in foreign exchange trading for as long as one year, and major crimes will be reported to the prosecution and related agencies.”

A senior official of FSB said, “Ten suspects under suspicion of heavy crimes will face criminal charges.”

“The number of suspects will increase with FSB’s independent investigation and the joint investigation with the NTS and the KCS under way,” Director Roh added.

Suk-Ho Shin kyle@donga.com