![[서울신문] Ha Tae-kyung “Resume short selling a month after the by-election, financial committee political decision”](https://img.seoul.co.kr/img/upload/2021/01/31/SSI_2021013108370300.jpg "[서울신문] Ha Tae-kyung “Resume short selling a month after the by-election, financial committee political decision”")
Member of the People’s Power Ha promotes the’Illegal Short Sale One Strike Out Act’ to expel illegal short selling agencies
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▲ An image of a bus that promotes the’opposition to the resumption of short selling’ scheduled for operation from the 1st of the Korea Stock Investors Association (Han Tu-yeon)
Offering
Rep. Ha Tae-gyeong of the People’s Strength condemned the Financial Services Commission’s decision to resume short selling stocks on May 3 for election purposes.
Congressman Ha argued that short selling should not resume without improving the unfair system, saying that short selling will resume about a month after the by-election of the mayor of Seoul and Busan mayor on April 7.
He said that the Financial Services Commission’s resumption of short selling in May was an absurd decision, and stressed that it is unacceptable to resume short selling without fundamental surgery in the unfair short selling market.
Assemblyman Ha said, “The Financial Services Commission should make policy decisions based on expert judgment, not political decisions.” “The Financial Services Commission announced how and when to finish improving the unfair short-selling market system that is infinitely unfavorable to individuals before the decision to resume on May 3rd. It should have been announced first.”
In the short selling market, fairness is restored first, but the Financial Services Commission criticized it as’blindfolded and Aung’, criticizing that it seemed to think that it would not be a bad thing for the ruling party if short selling resumed after the election.
Congressman Ha has been pursuing the’Illegal Short Selling One Strike Out Act’, saying that 580 cases of illegal short selling were detected over the past 11 years, but the fine was only 9.3 billion won.
According to the Financial Services Commission’s short selling data, between 2010 and 2020, the amount of short selling transactions was 724 trillion won, and 580 non-borrowing short sales were illegal in the same period, while the total amount of fines was only 9.3 billion won, which is less than 20 million won per case. Assemblyman Ha emphasized that short selling cannot be prevented by’penalizing cotton bats’.
He argued, “No one knows how many illegal short sales have been made other than the 580 cases that were detected because the system for illegal short selling was not properly established. This is why individual investors have no confidence in the unfair short selling market itself.”
The’Illegal Short Selling One Strike Out Act’ is a bill with the intention that institutions that make illegal short selling will forever be removed from the short selling market.
Reporter Yoon Chang-soo [email protected]