【Youth Daily】 The Financial Services Commission has expressed its official position that it will take time to decide whether to resume short selling.
According to the Financial Services Commission on the 19th, Chairman Eun said at the Financial Services Commission’s work plan briefing held the previous day (18th) at the Seoul Government Complex, “I hope you will wait a little longer for the final decision (whether to resume short selling).”
He also stressed, “Affirmative reports that the government has confirmed the resumption of short selling or decided to extend the ban can cause great confusion in the market.”
Chairman Eun explained, “A matter related to short selling is a matter to be decided at a meeting of the Financial Services Commission consisting of nine people.”
The Financial Services Commission is a consensus-based administrative agency composed of the chairman and vice chairman of the Financial Services Commission, standing members, and non-standing members. The Vice Minister of the Ministry of Strategy and Finance, the Director of the Financial Supervisory Service, the President of the Korea Deposit Insurance Corporation, and the Vice President of the Bank of Korea will participate for granted.
Chairman Eun said, “I hope you understand that just as the executives and employees of the Bank of Korea cannot speak definitively on interest rate-related matters determined by the Financial Monetary Commission, neither me nor the staff of the Financial Services Commission (Sec. I hope” he said.
When asked if they are currently discussing short selling with the ruling party, he replied, “There is no such thing. If the National Assembly is held in February, the lawmakers can talk, but for us, it will be a process of listening rather than discussing or giving opinions.”
Earlier, the Financial Services Commission announced that it plans to finish improving related systems with the aim of resuming short selling in March through text notifications sent to reporters on the 11th and 12th. However, there are growing voices from individual investors and some of the passports that the ban on temporary short selling should be further extended until the system is sufficiently improved.
Chairman Eun said, “Through recent revisions to the law, it is possible to impose penalties up to the maximum order amount for illegal short selling, and criminal penalties such as imprisonment for more than one year have become possible.” “He said.
In addition, “It is compulsory to keep information on lending transactions for the purpose of short selling for 5 years, but it is pointed out that handwriting can be manipulated, so we have in mind that we can check it by computer, etc.” We are also building a system,” he said.
He added, “The short selling of market makers who are concerned about institutional abuse will be reduced to half of the current level, and improvement measures to expand short selling opportunities for individual investors are being prepared along with measures to protect investors.”
Regarding the demand for’debt investment’ to buy stocks out of debt, he said, “I think it is right to invest within one’s own capabilities, both in terms of personal asset management and the soundness of financial institutions.”
【Youth Daily = Reporter Kang Jeong-wook】