South Korea’s Financial Services Commission (FSC) said the Korea Exchange (KRX) will begin operating an AI-driven market monitoring system from 3 February.
The system aims to strengthen early responses to market manipulation and other unfair trading activities.
Authorities noted a recent increase in attempts to influence or manipulate stock prices through the spread of false information online.
Verifying the large volume of data circulating in cyberspace has remained difficult.
The system follows comprehensive measures announced jointly by the FSC, the Financial Supervisory Service (FSS) and the KRX in July 2025.
Those measures were aimed at addressing unfair trading practices in the stock market. The KRX developed the AI-based system to improve the speed and accuracy of detection and analysis.
The monitoring system was trained using online posts, reported cases of spam text messages and YouTube videos.
It also analysed stock price movements of items previously identified as potential targets of unfair trading. Based on objective indicators learned during training, the AI tracks trends in online information.
It assigns scores to individual stocks and flags those with a high probability of unfair trading activity.
The results will help authorities assess whether suspicious transactions have occurred. They will also support more detailed examinations where necessary.
With the system in place, authorities can respond more quickly to suspicious trading. The system will expand the range of online information monitored in real time.
Automated detection will also reduce the time required for initial analysis.
The FSC and the KRX said they will use the system to strengthen oversight and enforcement against unfair trading in capital markets.
Featured image credit: Edited by Fintech News Hong Kong, based on image by Frolopiaton Palm via Freepik
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