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▲ Finance Commissioner Eun Seong-soo is holding an opening ceremony at the ‘2021 Securities and Derivatives Market Opening Ceremony’ held at the Korea Exchange in Yeouido, Seoul on the 4th. yunhap news |
[에너지경제신문 이나경 기자] The Financial Services Commission announced that it will finish improving the system with the aim of resuming short selling in March.
The Financial Services Commission explained in a notice on the 11th, “The ban on temporary short selling due to the novel coronavirus infection (Corona 19) will end on March 15.”
He said, “We plan to finish improving the system, such as strengthening the punishment for illegal short selling, improving the market maker system, and improving individual accessibility for short selling with the aim of resuming short selling in March.” It is interpreted that it drew a line in the recent assertion of “extending the ban on short selling” raised inside and outside the political sphere.
Together with the Democratic Party’s Supreme Commissioner Yang Hyang-ja, at the Supreme Council’s meeting on the same day, he said, “We have to seriously consider the extension of the ban on short selling,” referring to the market unrest over the dysfunction of short selling.
Previously, Park Yong-jin and Democratic Party lawmaker also publicly requested to the Financial Services Commission that the resumption of short selling should be carefully reviewed.
The financial authorities decided a market action banning short selling of all listed stocks for six months after the stock price plunged due to the Corona 19 incident in March last year.
Since then, considering the situation where Corona 19 has not ended, the measure has been extended for 6 months.
Ahead of the resumption of short selling in March, individual investors have been protesting, saying that short selling, betting on a decline in stock prices, could put a cold water on the booming Korean stock market.
On the other hand, there is an opinion that prohibiting short selling for a long time is contrary to the flow of the international capital market, and that the net function of’forming an appropriate price’ through short selling is necessary.
Reporter Lee Na-kyung [email protected]