Financial authorities are establishing a comprehensive surveillance network that will use artificial intelligence(AI) to counter increasingly sophisticated unfair trading practices in the stock and virtual asset markets.

The Financial Services Commission(FSC) and the Korea Exchange said the AI-based monitoring system will begin operating Tuesday and will strengthen initial responses to unfair trading activities such as stock manipulation.

The AI system is designed to analyze online posts, YouTube videos, spam text reports and stock price data to detect pump-and-dump schemes or the dissemination of false or misleading information to inflate the value of stocks. 

The FSC believes this will make it possible to analyze various cyber information rapidly and effectively, thereby reducing the time required to detect suspicious transactions.

The Financial Supervisory Service, for its part, has developed a system to automatically extract second-by-second sections that show suspicious activity such as stock manipulation by applying an AI algorithm to the virtual asset analysis platform VISTA.