Prosecutor Crackdown on Malicious Rumors Begins

Prosecutor-General Lim Chae-jin yesterday ordered prosecutors nationwide to crack down on those stoking fears of an economic crisis by spreading groundless rumors.

The Supreme Prosecutors` Office ordered investigations and prosecution of illegal activities that upset economic order and the pursuit of illicit profits by mobilizing all officials at special investigation and criminal departments.

The probe will target illegal gossip magazines and Web sites that disseminate malicious rumors that certain companies face bankruptcy and financial crunch.

The subjects of investigation include illegal foreign currency transactions via overseas gambling; smuggling of assets abroad and foreign currency speculation; smuggling out of national wealth such as illegal wiring of foreign currencies; taking high-denomination foreign currencies abroad; failure to recover overseas bonds; and violation of securities law through stock price manipulation and use of confidential information.

Prosecutors said they will cooperate with the National Tax Service, the Korea Customs Service and the Financial Supervisory Service in this crackdown.

In the interest of economic recovery, investigators will exercise caution in their probes into corporations to prevent damage to their business activities, a prosecutor said.

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