AI-driven Stock Market Monitoring System Adopted to Boost Early Response Capacity against Unfair Trading Activities

The Financial Services Commission announced that the Korea Exchange (KRX) will begin to operate an AI-driven market monitoring system from February 3 to bolster its early response capacity against market manipulation and other unfair trading activities.

Despite recent increases in the number of attempts to unfairly influence and manipulate stock prices through dissemination of false information online, it remained difficult for authorities to verify the vast volume of data circulating in the cyberspace.

Against this backdrop, as a follow-up to the comprehensive measures to stamp out unfair trading activities in stock markets (jointly announced by the FSC, FSS and KRX in July 2025), the KRX has developed an AI-driven monitoring system to more quickly and accurately detect and analyze relevant information circulating in the cyberspace.

The newly launched AI-driven market monitoring system has been developed based on the training and analysis of online posts, reported cases of spam text messages, YouTube videos, and relevant data on stock price movements on the stock items that have been previously identified as potential targets of unfair transactions. Based on a set of objective indicators that the AI has learned from the training, the system has been designed to monitor trends of cyber information, assign scores on individual stock items, and automatically detect the items showing a high probability for unfair transactions activities. The findings will assist authorities to look into whether there are actually suspicious transactions activities involving certain stock items and help them to conduct more in-depth examinations if deemed necessary.

With the AI-driven market monitoring system in place, authorities will be able to more quickly respond to suspicious transactions activities. The types of cyber information being monitored on a real-time basis will be expanded with an enhanced level of efficiency in sorting out high-risk stock items. The AI-based automated detection function will also help to reduce the time it takes to conduct initial analysis.

The FSC and the KRX will make most use of the AI-driven market monitoring system to effectively stamp out unfair trading activities in capital markets.

* Please refer to the attached PDF for details.