Reporter, investor charged for profiting $6.3M through stock-boosting articles

A former financial newspaper reporter and the CEO of an investment advisory firm are among seven individuals indicted for allegedly orchestrating a scheme to inflate stock prices through news articles and pocketing over 8.55 billion won (approximately $6.3 million USD) in illicit profits. The group is accused of violating capital market laws through preemptive trading based on "featured stock" reports.

Prosecutors allege that the defendants exploited the rapid spread of "featured stock" articles through securities trading systems, which typically triggers a surge in buying interest from investors. Before these articles were published, the group allegedly purchased shares of targeted companies, often small-cap or volatile theme stocks. Once the articles were released and the stock prices rose, they would sell their holdings for a profit.

The scheme, which ran from October 2020 to May 2025, involved over 1,800 "positive news" articles. The mastermind, identified as an individual with an accounting background operating a similar investment advisory firm, allegedly colluded with a reporter to recruit four other reporters. These reporters then wrote and distributed the articles within their respective media outlets. Communication within the group, including coordinating "sell signals" with messages like 'RD' (ready), occurred through Telegram chat rooms.

In a separate case, another financial newspaper reporter is facing trial while in custody for allegedly profiting 740 million won ($540,000 USD) through preemptive trading using his authority to publish favorable articles. This reporter allegedly used accounts under acquaintances' names as regulatory crackdowns on illicit trading intensified. Prosecutors have vowed to continue cooperating with financial authorities to strictly address financial and securities crimes and stock market manipulation that harms the public.