Blue House
The Blue House announced that it will plant awareness that illegal short selling will surely be caught. It also offered more opportunities to sell short to individual investors. The Blue House said, “The government has continuously improved the problems of the short selling system pointed out by the market,” in response to a national petition requesting the abolition of short selling. The Blue House said, “Through the revision of the Capital Market Act, penalties and criminal penalties have been imposed on illegal short selling, and it is mandatory to keep the information on lending transactions for the purpose of short selling for five years to enhance transparency in short selling transactions. “I will make sure that the recognition that short selling is always caught.” 210,000 people participated in this petition. The Blue House also announced that it will improve the issue of unfairness between individuals and institutions claimed by individual investors. The Blue House said, “We have decided to reduce the size of short selling by market makers who are concerned about system abuse to less than half of the current level, and will expand opportunities for short selling to individuals.” However, there are also criticisms on whether it is desirable to increase the participation of individuals in specialized investment areas that predict the value of stocks in the future. Earlier, the Financial Services Commission implemented a temporary ban on short selling for six months from March after the corona 19 spread and the stock market crashed last year. After extending another six months, the Financial Services Commission decided to partially resume short selling from May 3 this year. The issue of short selling also appeared in the remarks of President Moon Jae-in. President Moon said at a cabinet meeting on December 1 of last year that “individual investors participated in the Donghak Ant Movement and played a role in protecting our stock market. And the government’s efforts to protect individual investors have also helped.” The KOSPI 3000 era is one of President Moon’s representative economic achievements. By Lee Wan, staff reporter [email protected]