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Kim So-young “Strict Response to Illegal Short Selling… Proactively Improve the System”

NSP NEWS AGENCY, By Soon-ki Lee and Soo-in Kang, 2024-01-03 17:36 ENX7
#ShortSelling #SystemImprovement #inancialregulators

(Seoul=NSP NEWS AGENCY) = After recently uncovering tens of billions in illegal short selling by foreign investment banks (IBs), financial regulators are once again warning against illegal short selling.

On the 3rd, Kim So-young, Vice Chairman of the Financial Services Commission, said in his opening remarks at a meeting to discuss ‘Measures to Improve Competitiveness of Public Offering Funds’, “We will definitely pursue improvements in the short selling system.”

“The government recently uncovered Global IB’s prolonged illegal borrowing-free short selling and imposed the largest fine in its history,” said Kim. “We will continue to take a tougher stance against repeated misconduct as it hinders the achievement of our government’s goal of advancing capital market development.”

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He continued, “To ensure that illegal short selling does not occur again and again, undermining trust in our stock market, we will prepare a plan to establish a computerized system to prevent unleveraged short selling and promote proactive institutional improvement to restore the fairness of the short selling system.”

Earlier, the financial regulator decided to fine BNP Paribas and HSBC $26.52 billion, the largest ever fine for illegal short selling, and refer them to prosecutors.

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