South Korea’s financial watchdog said Friday it will tighten its surveillance on illegal online-based brokerages in a move to stem unlawful acts that can hurt individual investors.
The Financial Supervisory Service said it plans to launch a tougher probe into Gosu (www.gosu777.com), which is presumed to be the largest illegal Web-based brokerage house in the country.
Such illegal brokerage houses induce individuals to make risky investments on futures, options, exchange-traded funds and other financial instruments by having them borrow cash without approved safety measures.
The FSS warned that unregistered securities firms are also likely to embezzle investors’ deposits, adding that it will make a full-fledged effort to protect retail investors from potential swindles.
Officials from the FSS said Gosu is presumed to be headed by the same person who operated TD Stock, another illegal brokerage house which was forcibly closed after it took advantage of individual investors and inflicted financial damages on them. (Yonhap News)
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