STAMP Analysis of the Hanmi Short Selling Episode

摘要

The financial market has been evolving as an increasingly complex sociotechnical system, ever since it experienced expansion on account of information technology developments. Our approach is rooted in engineering-based accident analysis, or so-called systems-theoretic accident modeling and processes (STAMP). From the STAMP model, systems-theoretic process analysis (STPA) can be developed on the basis of the accident analysis method and hazard analysis. STPA attempts to systematically inspect accidents, and is involved in system redesigns that, had they been implemented, could have precluded those accidents. Through the lens of STPA, we aim to pinpoint the overarching causes of problems in the South Korean disclosure system and find more effective remedies. Having suspected Hanmi Pharmaceutical of being part of an insider trading scandal, South Korea's Financial Supervisory Service investigated that company. By applying the STAMP model, we derive more insightful recommendations regarding the timely disclosure of company information, and thus the prevention of suspicious (and possibly illegal) short selling in the stock market.