Seoul, Sep 9 (IANS) South Korea’s financial watchdog on Wednesday conducted raids targeting a journalist covering the agency over alleged stock manipulation.

The special investigation team at the Financial Supervisory Service (FSS) said it searched the home of a reporter for a local business news outlet and the journalist’s desk in the watchdog’s press room.

Sources said the FSS plans to send investigators to the outlet’s headquarters as well, reports Yonhap news agency.

The investigation comes amid allegations the head of an entertainment company colluded with four journalists to publish articles promoting the company’s stock, eventually gaining unlawful profits.

The FSS, meanwhile, has been investigating four stock manipulation cases involving current and former journalists since last year, with the latest case reportedly the only one yet to be referred to prosecutors.

Meanwhile, fair trade watchdog on Wednesday imposed a combined fine of 3 billion won ($2.23 million) on six paper manufacturers for rigging supply tenders held by an agricultural newspaper.

The Fair Trade Commission (FTC) said the companies colluded in bids held by the Farmers Newspaper, a major agricultural publication, from 2021 to 2025. They agreed in advance on the winners, bid prices and which firms would submit deliberately losing bids.

The FTC also decided to refer two of the companies to prosecutors.

According to the FTC, the companies had been fixing printing paper prices and extended the scheme to the publisher’s bids, restricting competition to keep winning bids above a certain level.

During the collusion period, winning bids averaged about 96.2 percent of the estimated contract prices, peaking at about 99.4 percent, compared with an average of 87.6 percent from 2018 to 2020, when there was no collusion.

The FTC pointed out the six companies reaped financial profits through such arrangements. The watchdog vowed to continue monitoring the paper industry for price fixing and take stern action against violations in accordance with the law.

—IANS

na/