South Korea's main bourse operator, the Korea Exchange (KRX), announced it will start operating an AI-based market monitoring system this week to strengthen detection of unfair stock trading. The system, launching Tuesday, aligns with July measures to eradicate unfair practices and aims to prevent pump-and-dump schemes by analyzing online posts and stock data. It follows President Lee Jae Myung's call for tougher actions to boost investor trust.
South Korea's main bourse operator, the Korea Exchange (KRX), announced on Monday, February 2, 2026, that it will begin operating an artificial intelligence (AI)-based market monitoring system this week to bolster detection of unfair stock trading. The new system is set to launch on Tuesday and forms part of a series of measures unveiled in July 2025 by the KRX and financial authorities aimed at eradicating unfair practices in the local capital market.
The initiative follows President Lee Jae Myung's recent call for stronger actions to restore investor confidence in the stock market, where he warned manipulators that his administration would ensure they "lose everything."
The AI detection system targets pump-and-dump schemes, which involve improperly inflating stock prices, often through the dissemination of false or misleading information online. According to the KRX, the AI will analyze a wide range of data, including online posts, videos, spam text reports, and stock price information, to identify equities at high risk of unfair "pumping."
Once suspicious stocks are flagged by the AI, human monitors will track their price trends and implement preventive measures if needed, the KRX added. In a joint press release, the KRX and the Financial Services Commission stated, "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."
Operated from Seoul, the system is anticipated to enhance investor protection and market integrity.