[사설]Decision on whether to resume short selling, election populism cannot fall

The Financial Services Commission announced on the 11th that it would lift the ban on short selling scheduled for March 15th. Although short selling was banned to alleviate the shock of Corona 19, the intention of the authorities is understandable in that it is necessary to return the system to cool down the stock market overheating. Even when the market has returned to normal, if the system is forcibly blocked, the autonomy function will be impaired. Short selling is an investment method that realizes a margin by borrowing and selling stocks when a stock price of a particular stock is expected to fall, and buying and repaying stocks when the stock price falls.

Donghak ants will not be happy to resume short selling. On the bulletin board of the Blue House National Petition, there is a post saying,’Abolish short selling entirely.’ Some investors consider President Moon Jae-in’s entry into the’stock 3,000 era’ as a criticism, but they have hopes that the authorities will easily resume it. The problem is that the politicians are carrying individual investors on their backs. In the passport, comments continue to press for the extension of the ban on short selling. “We have to seriously consider extending the ban on short selling. Let’s give an answer in January,” he urged. The ruling party officials decided that there was no need to sprinkle cold water by rushing to resume short selling in a situation where they had to promote the rise in stock prices ahead of the preliminary election in Seoul and Busan in April. It is in a similar context to what Democratic Party leader Lee Nak-yeon came out with a’corona profit sharing system’ ahead of the election.

The Korean financial industry suffered measles due to various accidents created by poisonous mushrooms of’political finance’. Financial authorities should thoroughly rule out political logic and decide whether to resume short selling, taking into account only the principles of the capital market and the stock market situation. Now is the time to focus on improving the system that is criticized as’a playground tilted against foreigners and institutions’ to increase access to short selling by individual investors and to prevent illegal transactions. If finance depends on electoral populism, it will have to regress again.

< 저작권자 ⓒ 서울경제, 무단 전재 및 재배포 금지 >