Prosecutors Seek Five-Year Sentence for Finfluencer Accused of Making 2.2 Billion Won Through Front-Running

Prosecutors are seeking a five-year prison sentence for a South Korean finfluencer accused of using a Telegram stock channel to profit from trades made ahead of recommendations to subscribers.

At a final hearing on Sept. 3, prosecutors asked the Seoul Southern District Court’s 13th Criminal Division to impose a 9 billion won fine and confiscate 2,274,774,136 won from the defendant, identified by his surname Lee. They also sought two-year prison terms and 500 million won fines for four other defendants, including Lee’s mother, who allegedly lent securities accounts.

Prosecutors said Lee built trust by presenting false credentials as a former financial-sector worker and attracted tens of thousands of investors. They alleged that he bought selected stocks in advance, recommended them to subscribers without disclosing his holdings, encouraged buying, and sold after prices rose. The Telegram channel reportedly had 36,000 subscribers, and prosecutors accused Lee of facilitating scalping over five years.

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An influencer who secured influence through large-scale social networks betrayed the public’s trust and harmed the transparency and fairness of the capital market in an intelligent crime.

The prosecution described the case as an intelligent crime in which an influencer used broad social-media reach to betray public trust and damage transparency and fairness in the capital market. It also alleged that the other defendants provided accounts in their own names and helped evade investigators’ efforts to trace the transactions.

Lee’s lawyer argued that posts during the channel’s later period, from October 2022 to August 2023, merely summarized public news and disclosures and did not amount to specific buy recommendations. The defense also disputed the calculation of illegal gains and argued that later buying and earlier selling did not meet the legal requirements for scalping.

In his final statement, Lee said, “I had insufficient awareness of the illegality at the time. I should have been more careful because I was conveying information to many people, and I regret acting immaturely.” The court set sentencing for Nov. 19.

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I had insufficient awareness of the illegality at the time. I should have been more careful because I was conveying information to many people, and I regret acting immaturely.