URL copied successfully.
Press CTRL+V or paste display URL.
| Article 176 (Prohibition on Market Price Manipulation) |
| (1) | No one shall engage in any of the following acts with intent to mislead anyone into misapprehending that the trading of listed securities or exchange-traded derivatives is in bull market, or to mislead any third person into making a wrong judgment: |
| 1. | Selling securities or exchange-traded derivatives in collusion with third person to sell the securities or exchange-traded derivatives at the same price as his or her sale price, or at an agreed value at the same time he or she sells them; |
| 2. | Purchasing securities or exchange-traded derivatives in collusion with third person to sell the securities or exchange-traded derivatives at the same price as his or her purchase price, or at an agreed value at the same time he or she purchases them; |
| 3. | Appearing to trade securities or exchange-traded derivatives with no intent to transfer the interest or right therein; |
| 4. | Entrusting or being entrusted with any act set forth in subparagraphs 1 through 3. |
| (2) | No one shall engage in any of the following acts with intent to attract anyone to trade listed securities or exchange-traded derivatives: <Amended on May 28, 2013> |
| 1. | Misleading any person into misapprehending that the trading of such securities or derivatives is in bull market, or selling or purchasing, or entrusting or being entrusted with the sale or purchase of, such securities or derivatives to cause a fluctuation in the market price (referring to the market price formed in the securities market or the derivatives market, or the market price formed in the course of intermediating the trading of listed stocks through an alternative trading system, or other market price prescribed by Presidential Decree; hereinafter the same shall apply); |
| 2. | Disseminating a rumor that a fluctuation in the market price for such securities or derivatives is being caused by his or her or a third person's market manipulation; |
| 3. | Making a false or misleading representation concerning a material fact in trading such securities or exchange-traded derivatives. |
| (3) | No one shall engage in making purchases or sales in connection with listed securities or exchange-traded derivatives or shall entrust or be entrusted with such act, with intent to fix or stabilize the market price of the listed securities or exchange-traded derivatives: |
| 1. | Where an investment trader (limited to an investment trader who has entered into an underwriting contract with the issuer or owner of the securities subject to public offering or sale; hereafter in this Article the same shall apply) trades such securities with intent to make the public offering or sale of the securities smooth by stabilizing the price of the securities (hereafter in this paragraph referred to as "manipulation for stabilization") during the period beginning on a day prescribed by Presidential Decree not exceeding 30 days before the end of the subscription period for the public offering or sale of the securities, and ending on the expiration of the subscription period; |
| 2. | Where an investment trader trades securities to create supply and demand (hereafter in this paragraph referred to as "market creation") for the securities publicly offered or sold in a manner prescribed by Presidential Decree during a period prescribed by Presidential Decree not exceeding six months from the day on which the securities are listed; |
| 3. | Where a person prescribed by Presidential Decree, such as an executive officer of the issuer of securities publicly offered or sold, entrusts an investment trader with manipulation for stabilization; |
| 4. | Where an investment trader is entrusted with manipulation for stabilization in accordance with subparagraph 3; |
| 5. | Where an underwriter of securities publicly offered or sold, entrusts an investment trader with marker creation; |
| 6. | Where an investment trader is entrusted to create market in accordance with subparagraph 5. |
| (4) | Where any of securities, derivatives or underlying assets of the securities or derivatives are listed on an exchange, or in other equivalent circumstances prescribed by Presidential Decree, no one shall engage in any of the following acts in connection with the trade of such securities or derivatives or other transactions (hereafter in this paragraph and Articles 177 and 443 (1) 7 referred to as "trade, etc."): <Amended on Feb. 3, 2009; May 28, 2013> |
| 1. | Causing a fluctuation in, or fixing, the market price of underlying assets of certain derivatives with intent to earn or causing a third party to earn unjust profits from the trade, etc. of such derivatives; |
| 2. | Causing a fluctuation in, or fixing, the market price of derivatives with intent to earn, or causing a third party to earn, unjust profits from the trade, etc. of such underlying assets of derivatives; |
| 3. | Causing a fluctuation in, or fixing, the market price of securities linked to certain securities prescribed by Presidential Decree or underlying assets of such securities with intent to earn, or causing a third party to earn, unjust profits from the trade, etc. of such securities; |
| 4. | Causing a fluctuation in, or fixing, the market price of securities with intent to earn, or causing a third party to earn, unjust profits from the trade, etc. of underlying assets of such securities; |
| 5. | Causing a fluctuation in, or fixing, the market price of derivatives the underlying assets of which is the same as or similar to those of such derivatives with intent to earn, or causing a third party to earn, unjust profits from the trade, etc. of such derivatives. |