[이번주 증시인물]Prime Minister Jeong Sye-gyun sets fire to’politicization of short selling’

[이데일리 이슬기 기자] Short selling has emerged as a political issue. This is because the Donghak ant movement is intensifying and it is difficult to find people who do not have stocks. Prime Minister Jeong Sye-gyun was none other than igniting the politicization of short selling. This week’s stock market person looks back through Prime Minister Chung.

Prime Minister Jeong Sye-gyun is speaking at the 36th International Development Cooperation Committee held at the International Conference Hall in the annex of the government building in Jongno-gu, Seoul on the 20th. (Photo = Newsis)

On the 14th, Prime Minister Chung Sye-gyun first mentioned short selling. In the first year of his inauguration, he appeared on a radio station and fueled the debate, saying, “I personally don’t feel very happy about the (short selling) system itself.” Prime Minister Chung also remarked on the 20th that “it is not desirable to resume short selling without system improvement,” fueling controversy.

Prime Minister Chung emphasizes that his sister is’individual, not government’s.’ However, no matter how much it is an individual’s thought, the weight of the second-in-chief administration’s words is by no means light. After Prime Minister Chung made a comment about short selling, short selling quickly emerged as a major political issue.

In fact, after Prime Minister Chung’s remarks, the politicians who declared running for mayor of Seoul are eager to speak. Rep. Woo Sang-ho mentioned that “Illegal short selling should be extended under the premise that a cotton bat solves punishment,” and Ahn Cheol-soo, CEO of the People’s Power, also set the day that “resuming short selling is poisonous to the capital market. Because of this, there is a bitter reaction in the financial investment industry, saying, “Short selling is being used for elections.” It is pointed out whether short selling is intended to be used as a weapon of public opinion war ahead of the re-election in March.

While politicians are putting a spoon on short selling, financial investment industry officials are backing back. The Financial Services Commission has adhered to the principle of resuming short selling in March, but on the 18th, Chairman Eun Seong-su, chairman of the Financial Services Commission, stepped back, saying, “I can’t talk quickly about this issue,” and “it has not been confirmed yet.” The Financial Investment Association, an institution representing the financial investment industry such as securities firms, also sticks to the principle story. “What we need to consider now is the fact that each market participant has very different views on the impact of short selling on the market,” said Na Jae-cheol, head of the Gold Investment Association. “We need to respect each other’s opinions and narrow the gap between market participants.”

Even though short selling is an extremely economic issue, it seems that the financial investment industry has been sedated by the politics. It seems that the ruling party, not the Financial Services Commission, has already decided whether to resume or extend short selling. Whether or not to resume the original short sale is decided by a member of the FSC plenary meeting through discussion. However, with the influential politicians holding the issue of short selling, the bureaucrats, the main axis of the Financial Services Commission, are forced to pay attention. Meanwhile, through the mouths of various officials of the French Democratic Party, talks about whether to resume short selling or extend the ban are constantly pouring out. There is also a ridicule that resumption of short selling is possible only after the election.

Stock prices also put their weight on the fact that the resumption of short selling will be extended again. Geun-tak Yoo, a researcher at Kiwoom Securities, said, “Considering the overall conditions, short selling is highly likely to resume after the conditions have matured over time along with institutional supplementation.”