[단독]In the end, autumn was wrong, 3 out of 58 prosecutions for removing securities trading instruments

After Justice Minister Choo Mi-ae abolished the’Joint Securities Crime Investigation Group’ (hereinafter referred to as “synonymous means”) early last year, the prosecution’s investigation of securities crimes was found to be disrupting. The rate of completion of investigations has dropped significantly, and the rate of cases being handed over to trial has also sharply decreased. Minister Chu predicted that “there will be no problems with the related investigations without a combination of means,” but it was wrong.

According to the Supreme Prosecutors’ Office on the 10th, the rate of handling securities crime cases by the prosecutors dropped sharply last year. Looking at the status of receipt and handling of cases of violations of the Capital Market Act that the prosecutors requested for investigation from the Financial Services Commission over the past five years, 81 cases were received in 2016 and 77 cases were handled (prosecution or non-prosecution). The remaining four are under investigation. In 2017, 81 cases were received and all were closed. In 2018, 76 cases were received and 63 cases were processed, and in 2019, 56 cases were received, completing 33 cases. However, in 2020, 58 cases were received, only 8 cases were processed.

If you look closely at these statistics, the number and rates of prosecution have also been very low. Looking at the number of prosecutions compared to the number of filings, 55 out of 81 cases were prosecuted in 2016, and 56 cases were filed in 2019, 23 cases, but last year, 58 cases were transferred and only 3 cases were prosecuted. The prosecution rate of the annual treatment cases remained at 70% level from 2016 to 2019, but last year it was cut in half to 37.5% (3 of 8 cases).

The Supreme Prosecutor’s Office admitted, “Last year, there was some gap in business such as violations of the Capital Market Law.” It is explained that after investigating large-scale cases such as the’Sillazen case’ and maintaining prosecution, they could not properly pay attention to the rest of the cases.

According to Attorney A, who retired after working as a prosecutor until recently, the prosecution was in an internal investigation under the suspicion of large-scale stock price manipulation in the second half of last year. Attorney A said, “If there is such an investigation gap, all damage will eventually go to ordinary ant investors.”

Founded in May 2013, it is evaluated that it has played a major role in purifying the stock market enough to be referred to as’Yeouido Underworld’. By the beginning of last year, about 1,000 criminals were handed over to trial. Thanks to being a collaborative agency such as the Prosecutors’ Office, the Financial Supervisory Service, and Korea Deposit Insurance Corporation, it was possible to secure expertise and speed up the investigation. However, Minister Chu closed the door to a joint venture as part of the prosecution reform to reduce the prosecution’s direct investigation.

At the time, the prosecution, the securities industry, and civic groups had a large voice of opposition, saying, “If we get rid of the legal means, the investigation of securities crimes will be braked”, but it was not accepted. Some of the opposition and legal circles have raised suspicion that “isn’t it possible to eliminate legal means to prevent financial crimes against the government?” When asked if there is a plan to re-install the joint means at the state administration in October last year, Minister Chu replied, “Even if there is no joint means, there is no problem with the first and second financial investigation departments in the Seoul Southern District Prosecutors’ Office.” He also pointed out, “It was a hotbed of corruption,” saying, “Having adhered to the outside world and was caught in various corruptions.”

It is also pointed out that securities criminals are struggling with the abolition of legal means and the prosecution’s investigation into a disruption. An official in the securities industry who requested anonymity said, “After the disappearance of the means of use, stock price manipulators and others are in a bad mood.” “The crime is getting bolder.” According to the Financial Supervisory Service, the number of annual reports of illegal cyber financial activities received by the Financial Supervisory Service surged from 119 in 2018 and 139 in 2019 to 495 in 2020. Moon Chan-seok, former Gwangju District Prosecutor’s Office, who served as the first vice president, left the prosecutor’s office in August last year and pointed out, “If we get rid of the merger, stock price manipulators will most likely like it.”

Attorney Kim Jeong-cheol, who represents the victims of the’lime asset management fund redemption case’, suggested, “In order to properly investigate financial crimes, we need to revitalize the lawsuits or significantly recruit related experts.”

Reporter Minjoong Kim [email protected]