KRX to introduce AI monitoring system to prevent pump-and-dump schemes

▲ Financial authorities are seen briefing measures to stem unfair trading practices in the local capital market at the Korea Exchange's (KRX) office in Seoul in this July 9, 2025, file photo. (Yonhap)

unfair trading-AI

KRX to introduce AI monitoring system to prevent pump-and-dump schemes

SEOUL, Feb. 2 (Yonhap) -- South Korea's main bourse operator said Monday it will start operating an artificial intelligence (AI)-based market monitoring system this week, to strengthen its detection of unfair stock trading.

The new system, set to be introduced Tuesday, comes in line with a set of measures announced in July by the Korea Exchange (KRX) and financial authorities to eradicate unfair trading practices in the local capital market.

Such a move came after President Lee Jae Myung called for stronger measures to improve investors' trust in the local stock market, warning his administration will show stock price manipulators that they can "lose everything."

The AI detection system aims to prevent pump-and-dump schemes, or the improper boosting of stock prices, typically by spreading false or misleading information online.

According to the KRX, the AI will comprehensively analyze data such as online posts, videos, spam text reports and stock price data to flag equities that are highly subject to the unfair "pumping" of prices.

A human will then monitor the price trends of suspicious stocks detected by the AI and take preventive measures if necessary, the KRX added.

"We will make every effort for the early detection of unfair trading in the capital market, while expanding the utilization of AI technology and cyber data going forward," the KRX and the Financial Services Commission said in a joint press release.

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