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http://dx.doi.org/10.15207/JKCS.2017.8.9.041

Legal liability of the management firm on hacked Robo-Advisor's stock price manipulation  

Kim, Dong Ju (Dept. of Information Security, Graduate School of Information Security, Korea University)
Kwon, Hun Yeong (Graduate School of Information Security, Korea University)
Lim, Jong In (Graduate School of Information Security, Korea University)
Publication Information
Journal of the Korea Convergence Society / v.8, no.9, 2017 , pp. 41-47 More about this Journal
Abstract
This study is a preceding research designed to deduct an institutional supplementary measure that minimizes any inevitable side effects from the improvement of artificial intelligence (AI) technology, which is the core element of the Fourth Industrial Revolution. In this specific case in which the Robo-Advisor, the representative type of AI-applied technology, was hacked by a third party and ended up manipulating prices, the study was intended to examine the responsibility relationship of the current legal framework. Although the current legal framework strictly prohibits acts such as hacking and manipulation, it was confirmed that if the Robo-Advisor management firm acts in compliance with protection measures regarding hacking, the firm is free from any legal liabilities and there is insufficient legal protection available for ordinary investors with grand-scale damage from price manipulation Based on this study, further studies are needed to derive more institutional supplementary measures on overcoming these problems.
Keywords
Artificial Intelligence; Robo-Advisor; Hacking; Stock Price Manipulation; Legal Accountability;
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