Stock Market Manipulation Damages Calculator

Stock Market Manipulation Damages Calculator helps estimate Korea-related civil dispute, damages, evidence, settlement, and legal-cost assumptions in English.

Legal scenario inputs

Enter Korea-related court, traffic, debt, family, civil, medical-dispute, criminal, or real-estate dispute assumptions. Results are simplified planning estimates.

Civil claim recognized amount

₩14,000,000

Offset or paid amount

₩0

Net planning amount

₩14,000,000

Monthly planning amount

₩1,166,667

₩6,000,000 unrecovered

Estimated loss follows the court difference method (actual trade price minus the normal price without manipulation) for market manipulation (Korea Capital Markets Act arts. 176/177) and unfair trading (arts. 178/179). The compensation ratio is 100 percent minus comparative negligence. Damages under arts. 177/179 are eligible for a securities class action (Securities-Related Class Action Act art. 3). Limitation: 2 years from discovery, 5 years from the act. Korea-based 2026 rules; this is an estimate, not legal advice.

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What is the Stock Market Manipulation Damages Calculator?

This calculator estimates how much compensation an investor may recover after suffering a loss from stock price manipulation under Article 176 of Korea’s Capital Markets Act, or from unfair trading under Article 178.
Korean statutes contain no fixed formula for the loss, so the courts use the “difference” method: the actual trade price minus the “normal price” that would have prevailed without the manipulation.

Starting from that difference method, the tool computes the gross loss and then applies offsetting gains, comparative negligence, and delay interest to show a realistically claimable amount.
It also compares which remedy is most advantageous — an individual civil suit (Articles 177 and 179), a securities class action, dispute mediation, or a criminal complaint used to obtain investigation records.

Korea-specific disclaimer: This calculator is based entirely on Korean law as of 2026 — specifically the Capital Markets Act (Arts. 176, 177, 178, 179), the Securities-Related Class Action Act (Arts. 3 and 12), the Civil Act (Arts. 379, 396, 763), and the Act on Special Cases Concerning the Expedition of Legal Proceedings.
It is a reference estimate only and does not replace advice from a Korean attorney. The loss amount, comparative negligence, and causation are decided case by case by the courts.

Who is this for?

  • • Retail investors trapped in a “pump-and-dump” or theme stock who suspect manipulation
  • • Investors who bought high on false good news or rumors and then saw the price collapse
  • • Shareholders forced to sell low through short-selling or downward manipulation
  • • Victims of a stock where a prosecution or criminal conviction has occurred
  • • Small shareholders weighing whether to join a securities class action
  • • Anyone estimating a likely damages figure before filing a claim

What is Manipulation and Unfair Trading?

“Stock manipulation” colloquially covers both market manipulation and unfair trading.
The Capital Markets Act prohibits each type and imposes liability for damages when the ban is breached.

Market Manipulation (Article 176, liability under Article 177)

  • • Matched orders: selling and buying at the same time and price by prior agreement (Art. 176(1)(1)-(2))
  • • Wash sales: fictitious trades with no intent to transfer ownership (Art. 176(1)(3))
  • • Actual-trade manipulation: trades that mislead others into thinking the market is active or that move the price (Art. 176(2)(1))
  • • Spreading rumors / false statements: claiming the price moves by manipulation, or false or misleading statements on material facts (Art. 176(2)(2)-(3))
  • • Linked manipulation: moving the price of a derivative and its underlying asset in tandem (Art. 176(4))

Unfair Trading (Article 178, liability under Article 179)

  • • Using an unfair means, scheme, or trick (Art. 178(1)(1))
  • • A false statement on a material fact to obtain a financial benefit (Art. 178(1)(2))
  • • Using a false market quotation (Art. 178(1)(3))
  • • Spreading rumors, deception, assault, or intimidation to trade or move prices (Art. 178(2))

Note: Insider trading (use of undisclosed material information, Arts. 174-175) is excluded here because its loss is measured differently.
That said, damages for insider trading (Art. 175) are also eligible for a securities class action.

How is the Compensation Calculated?

Step 1 · Per-Share Loss (Difference Method)

The loss is the gap between the actual trade price and the “normal price” that would have formed without manipulation.
If you bought high during a pump, the per-share loss is “buy price minus normal price”; if you were induced to sell low, it is “normal price minus sell price.”
The normal price is estimated from the stable price just before the manipulation or after it fully subsided, and in litigation it is fixed by expert appraisal and an event study.

Step 2 · Gross Loss and Offsetting Gains

The gross loss is the per-share loss multiplied by the number of affected shares.
Any dividends received during the manipulation period or profit from a partial sale are deducted as offsetting gains.
The remainder is the net loss subject to comparative negligence.

Step 3 · Comparative Negligence

The self-responsibility principle applies to investing, so courts reduce the award through comparative negligence.
Chasing a surging stock without checking, repeated speculative day-trading, or following baseless rumors and stock-tip rooms raises the negligence ratio.
In practice the ratio ranges widely from 0% to over 70%, so this calculator shows a plus-or-minus 10 percentage-point band to convey the uncertainty.

Step 4 · Delay Interest (Optional)

If payment is delayed, delay interest can be added.
Before litigation the civil rate of 5% per year applies; from the day after the complaint is served, 12% per year applies under the Act on Special Cases Concerning the Expedition of Legal Proceedings.

Mind the Limitation Period

A manipulation or unfair-trading damages claim is extinguished two years after you learn of the violation and five years after the violation occurred (Arts. 177(2) and 179(2)).
Investors often wait for a criminal conviction and let the period lapse, so review your claim early.

How to Use

Step 1: Choose the violation and loss type

Select manipulation or unfair trading, and whether you bought high or sold low.
The type determines the liability provision (Article 177 or 179).

Step 2: Enter the trade details

Enter the number of affected shares, the average execution price, and the estimated normal price.
Add any dividends or partial-sale profit as offsetting gains.

Step 3: Set the negligence ratio

Use the slider or a preset to set comparative negligence.
Presets cover an information-disadvantaged individual, ordinary chasing, speculative day-trading, and rumor-following.

Step 4: Review the result and remedies

Check the estimated award, the breakdown, and the negligence band.
Compare an individual suit, a securities class action, mediation, and a criminal complaint to plan your strategy.

Example Scenarios

Buying After a Pump (Most Common)

Suppose an operator pushed the price to 50,000 won with matched and wash trades, and you bought 1,000 shares.
If the price would have been 30,000 won without manipulation, the per-share loss is 20,000 won and the gross loss is 20 million won.
Applying 30% comparative negligence, the estimated award is about 14 million won.

Unfair Trading and Rumor-Following

You bought 500 shares at 80,000 won after a false disclosure, while the normal price is estimated at 50,000 won.
If following a baseless rumor supports 60% negligence, then out of a 15 million won gross loss the estimated award is about 6 million won.

Selling Low After Downward Manipulation

You sold 2,000 shares at an artificially depressed 20,000 won, but the normal price was 32,000 won.
With a per-share loss of 12,000 won and 20% negligence for an information-disadvantaged investor, the estimated award is about 19.2 million won.

Comparing the Remedies

Individual Civil Damages Claim (Arts. 177, 179)

It carries enforcement power and a judgment can include 12% annual delay interest.
However, you must prove the normal price and causation yourself, with cost and time involved.

Securities Class Action

Damages under Articles 177 and 179 are eligible for a securities class action under Article 3 of the Securities-Related Class Action Act.
The class must have at least 50 members holding at least one ten-thousandth (0.01%) of the defendant’s total issued securities, and with court permission the judgment binds the whole class — efficient for small, numerous losses.

Dispute Mediation (Exchange, KOFIA, FSS)

It is low-cost and, if settled, resolves quickly.
But it is voluntary, so it only works when the other side accepts, and manipulation losses rarely settle in mediation.

Criminal Complaint and Investigation Records

Because manipulation is covert and hard for individuals to prove, records from the prosecution, the FSC’s capital-market investigation unit, and the FSS are decisive.
A criminal conviction is key evidence in the civil case, but criminal proceedings alone do not pay compensation, so pursue a civil or class action in parallel.

Frequently Asked Questions (FAQ)

Q. Can I recover just because the price fell?

A. No.
A violation (manipulation or unfair trading), a resulting loss, and causation must all be recognized.
A loss from ordinary market movements is not compensable.

Q. How is the normal price determined?

A. It is estimated from the stable price just before the manipulation or after it fully subsided.
In litigation it is fixed by an event study and appraisal, so the calculator’s figure is only a reference.

Q. Why is comparative negligence applied?

A. Because the self-responsibility principle applies to investing.
The part attributable to the investor, such as chasing or speculative trading, is deducted, and the ratio is set by the court.

Q. What is the limitation period?

A. Two years from learning of the violation and five years from when it occurred (Arts. 177(2), 179(2)).
Waiting for the criminal outcome can cause the period to lapse, so consult early.

Q. I am a small shareholder — is a class action better?

A. If victims are many and each amount is small, a securities class action is efficient.
Meet the 50-member and one ten-thousandth holding requirements, obtain court permission, and the judgment binds the whole class.

Q. Can I claim the calculated result as is?

A. This is a reference estimate reflecting public information and court practice.
The actual loss, negligence, and causation depend on evidence and appraisal, so consult an attorney before filing.

Helpful Tips

  • Secure evidence first: trade records, quote and execution data, disclosures and news, and stock-tip-room chats greatly help prove causation.
  • Watch the criminal case: the results of the prosecution and FSC investigation and any conviction are decisive civil evidence.
  • The normal price is the crux: the loss turns on it, so prepare an appraisal and expert analysis.
  • Manage the limitation period: two years from discovery and five years from the act.
  • Act together: victims of the same stock can share cost and burden through a class or joint action.

Estimate Your Damages Now

Enter the trade price, the normal price, and the number of shares to see the estimated damages and available remedies right away.

This calculator is a reference estimate based on the 2026 Capital Markets Act and Securities-Related Class Action Act, and does not replace legal advice.