“I can’t solve the’tilted playground'”…與 urges successive prohibition of short selling

[이데일리 이성기 기자] In relation to the resumption of short selling in March, there are voices calling for an extension of the ban in passports. The temporary ban on short selling, which began in March last year due to the Corona 19 incident, is expected to end on March 15 after one extension.

Democratic Party lawmaker Song Young-gil, who is in unlimited debate (filibuster) on a partial amendment to the Act on the Development of Inter-Korean Relations (Amendment to the Anti-North Korea Warfare Prohibition Act). (Photo = Reporter Bang In-kwon)

On the 19th, Democratic Party lawmaker Song Young-gil, chairman of the National Assembly’s Foreign Affairs and Transportation Committee, wrote on his Facebook page on the 19th, ‘prohibition of short-selling, should not be lifted without alternatives.’ “There is no big disagreement on this,” he said. “It is not known how much the intensity and extent of the adjustment will be, but it is a general prospect that there is a high possibility of a certain adjustment phase.”

Rep. Song said, “The problem is, what will happen if we add a short selling attack when the shock of foreign capital’s departure from the stock market adjustment phase comes?” “If the proportion of foreigners reaches 37%, if short selling is allowed, our capital The market can face an irreversible catastrophe.”

“It is true that it has pure functions such as preventing asset bubbles, securing liquidity, and securing an objective view of the market, and it is difficult to dispose of it easily because there are practical restrictions such as global standards.” It is a clear fact that it is a’tilted playground’, which is infinitely disadvantageous to individual investors.

In particular, “at the end of last year, a bill to introduce penalties and criminal penalties for illegal short selling was passed, but it was not enough to fundamentally solve the problem.” “Will we resume or not?” We have extended the ban on short selling. “We have to take the time to come up with an innovation plan for short selling.”

On the 19th, Rep. Sang-ho Woo of the Democratic Party, who has declared a run for the mayor of Seoul by-election, visits the financial policy site of Seoul Fintech Lab, located in O2 Tower, Usadang-daero, Yeongdeungpo-gu, Seoul, and is having a meeting. (Photo = Yonhap News)

Rep. Woo Sang-ho, who was running for the 4/7 Seoul Mayor’s by-election, also said to the reporters after announcing a financial policy pledge this morning, saying, “I don’t think the slanted playground between ant investors and institutional investors has been resolved.”

Meanwhile, Eun Seong-soo, chairman of the Financial Services Commission, responded to a question about short selling during a briefing on the ‘2021 Business Plan for the Financial Services Commission’ held at the Seoul Government Complex the day before, saying, “No one at the Financial Services Commission, including me, can speak to you,” said “until the final decision is made. Please wait.”

He added, “There is no discussion with political parties such as the ruling party,” but added, “There will be a process of hearing opinions when the regular National Assembly is held in February.”