Eun Seong-soo “The final decision even for a short sale, I can’t tell you coolly…Please wait.”

Finance Commissioner Eun Seong-soo is explaining the work plan of the Financial Services Commission for 2021 at the joint briefing room of the Seoul Government Complex in Jongno-gu, Seoul on the 18th. [사진 금융위원회 제공]

Financial Commissioner Eun Seong-soo said, “No one, including me, can tell you whether or not the short sale will resume in March. I hope you will wait a little longer until the final decision is made.”

According to the Financial Services Commission on the 19th, Chairman Eun said at a briefing on the work plan of the Financial Services Commission held at the Seoul Government Complex the day before. “The matters related to short selling were decided by the Financial Services Commission consisting of 9 members, and will continue to be decided (through meetings).” “It is the same as no one of the BOK employees can speak conclusively about the interest rate decision of the Bank of Korea Financial Monetary Commission.” He said, “(The decision to resume or not) is expected in February.”

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 explained that some of the ruling party lawmakers insisted on extending the ban on short selling, “there is nothing under discussion with the National Assembly,” and said, “If the National Assembly is held in February, it will be a process of listening to opinions rather than consultations with members of the National Assembly.”

The Financial Services Commission initiated a full ban on short selling in March last year, and then extended it once in September. The deadline suggested at the time, March, is less than two months left. On the 11th and 12th, the Financial Services Commission announced that it plans to finish improving related systems with the aim of resuming short selling in March through a text notification sent to reporters. However, there are 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.

The Dealing Room of KEB Hana Bank in Jung-gu, Seoul on the 7th, when the KOSPI rose to the 3,000 mark for the first time based on the closing price. Reporter Kim Seong-ryong

Chairman Eun continued to emphasize the implications of improving the short selling system through the revision of the Capital Markets Act of the National Assembly and preparation of measures by the Financial Services Commission. “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. “For foreign investors, the penalties have been strengthened to the point that they are overkill.” 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.”

Reporter Dayoung Kim [email protected]