LEE JUNGSOO, Analysis of Finance Law Cases in 2024, Human Right and Justice, Vol. ,No.528(2025), pp.197-221.
<Abstract>
In 2024, the Supreme Court rendered a range of decisions in the field of financial law. Traditionally, financial law is divided into financial regulatory law and financial transaction law from an academic perspective. This classification method was consistently employed in previous annual reviews, including the 2023 financial law case review. However, as the majority of the 2024 precedents pertain to financial transaction law, a thematic approach has been adopted for this year's analysis. This retrospective examines 16 Supreme Court cases from 2024. While most rulings, apart from a few such as those concerning short-swing trading, are not deemed academically groundbreaking, they provide valuable insights into the Court’s interpretation of financial law. Accordingly, this review primarily introduces the content of the rulings, with analytical commentary provided selectively, following established case law review conventions.
The key rulings are summarized as follows:
(1) Short-swing profit return regulation: Previously, the Supreme Court had limited exemptions to cases explicitly listed in the law. However, it recognized, for the first time, an interpretative exemption for stock trades conducted during creditor financial institutions’ joint management procedures (workout).
(2) Collective investment businesses: When an investor demands fulfillment regarding collective investment assets, the legal structure of the collective investment business requires that the collective investment operator request payment instructions to the trustee.
(3) Electronic Securities Act: With the implementation of the Electronic Securities Act, listed securities are now required to be electronically registered, effectively mandating the "dematerialization" of physical securities. Consequently, rulings were handed down assuming legal impossibility for claims involving physical securities.
(4) Derivative products traded overseas: For derivatives related to the domestic market but traded on overseas over-the-counter markets, the court regarded them as derivatives under the Capital Markets Act. However, it denied compensation for damages due to the absence of a causal relationship with unlawful acts committed domestically.
<Keywords>
window dressing, stock manipulation, collective investment, short-swing trading regulation, electronic securities, virtual asset service provider (‘VASP’).
LEE JUNGSOO, Analysis of Finance Law Cases in 2024, Human Right and Justice, Vol. ,No.528(2025), pp.197-221.
<Abstract>
In 2024, the Supreme Court rendered a range of decisions in the field of financial law. Traditionally, financial law is divided into financial regulatory law and financial transaction law from an academic perspective. This classification method was consistently employed in previous annual reviews, including the 2023 financial law case review. However, as the majority of the 2024 precedents pertain to financial transaction law, a thematic approach has been adopted for this year's analysis. This retrospective examines 16 Supreme Court cases from 2024. While most rulings, apart from a few such as those concerning short-swing trading, are not deemed academically groundbreaking, they provide valuable insights into the Court’s interpretation of financial law. Accordingly, this review primarily introduces the content of the rulings, with analytical commentary provided selectively, following established case law review conventions.
The key rulings are summarized as follows:
(1) Short-swing profit return regulation: Previously, the Supreme Court had limited exemptions to cases explicitly listed in the law. However, it recognized, for the first time, an interpretative exemption for stock trades conducted during creditor financial institutions’ joint management procedures (workout).
(2) Collective investment businesses: When an investor demands fulfillment regarding collective investment assets, the legal structure of the collective investment business requires that the collective investment operator request payment instructions to the trustee.
(3) Electronic Securities Act: With the implementation of the Electronic Securities Act, listed securities are now required to be electronically registered, effectively mandating the "dematerialization" of physical securities. Consequently, rulings were handed down assuming legal impossibility for claims involving physical securities.
(4) Derivative products traded overseas: For derivatives related to the domestic market but traded on overseas over-the-counter markets, the court regarded them as derivatives under the Capital Markets Act. However, it denied compensation for damages due to the absence of a causal relationship with unlawful acts committed domestically.
<Keywords>
window dressing, stock manipulation, collective investment, short-swing trading regulation, electronic securities, virtual asset service provider (‘VASP’).