[서울신문] ‘Short selling ban’ re-extending strand… Outlook for at least 3 months

Only voices from the ruling party claiming the extension of the ban
It seems to be concluded after the Lunar New Year holidays according to the system improvement plan
The Financial Services Commission removes a step from the’end of March 15′ application form
Park Yong-jin pushed “disclosure of short selling quantity and stocks”

The short-selling ban is being held in the direction of another extension. Depending on the details of the financial authorities’ short selling improvement plan, the renewal period is expected to be finally decided in the middle of next month.

On the 24th, a passport official said, “It is difficult to discuss whether to resume short selling within this month, and we will conclude around the middle of next month after the Lunar New Year holiday.” There is also a voice, so we need to make a decision in consideration of this.” In fact, it seems that the government, which insisted on the resumption of short selling, has saved words and only voices from the ruling party insisting on the extension of the ban.

Short selling is an investment method in which stocks that are expected to decline in share price are sold by borrowing from a securities company, and when the stock price actually goes down, it is bought again at a low price and paid off. Financial authorities temporarily banned short selling for six months from March last year as the stock price fell sharply due to the spread of Corona 19, and short selling was banned until March 15, after a six-month extension.

The ban on short selling is expected to be extended for at least three months. The April 7 Seoul-Busan Mayor’s by-election, and seeing individual investors fiercely opposed to short selling, the Democratic Party believes that April should be over. In addition, a real-time integrated trading system that allows individual investors to participate in short selling is expected to be completed by the end of September. Considering this situation, it is expected that the re-extending period of the short selling ban will be decided.

As the ruling party took the lead in extending the ban on short selling, the voice of the financial authorities who had to decide on this issue disappeared. The Financial Services Commission prepared for the resumption of short selling by stating that’temporary short selling bans are scheduled to end on March 15′ to reporters on two occasions earlier this month. However, at a briefing on the 2021 business plan on the 18th, Eun Seong-soo, chairman of the Financial Services Commission, took a step back on whether or not to resume short selling, saying, “Please understand the point that I can’t say so quickly.”

The ruling party publicly stated that the ban on short selling should be extended, raising voices on the tightening of the punishment for illegal short selling. Democratic Party Rep. Park Yong-jin held a press conference on the day and said, “The Financial Services Commission is reluctant to disclose specific details such as the number of short selling and items for security reasons.” Pointed out. The Financial Supervisory Service’s comprehensive inspection of the Korean Exchange should include short selling and illegal activities.

Reporter Jinah Kim [email protected]
Reporter Kang Byung-cheol [email protected]