Kim Byung-wook’Short selling, system improved… If it’s fair, you have to resume

“Now individual investors are inclined to harm consciousness”

Kim Byung-wook, Democratic Party Member/Yonhap News

Kim Byeong-wook, a member of the Democratic Party, said on the 13th that the Financial Services Commission decided to resume short selling in March. “There was a problem in the short selling market, and the system is improving and making results.” “If it becomes fair after reviewing it, it is desirable to resume short selling.”

Rep. Kim, a secretary of the ruling party of the National Assembly’s Political Affairs Committee, said in an interview with KBS Radio’Kim Kyung-rae’s strongest current affair’, “There is a difference between the fear that individual investors have about short selling and that there is no objective evidence that the short selling in the market actually led to stock price manipulation. It is true,” he said. He said, “The short selling price is actually a net function. Even if I don’t own stocks, I sell them through borrowing and then fill in the old stocks for a certain period of time to activate interactive trading and find the right price.” “Now individual investors are very interested in the dysfunction, and ant investors are He diagnosed that he was very inclined to the consciousness of damage that he had suffered considerable damage.”

He added, “We have introduced a system that requires penalties or criminal penalties when illegal transactions or stock price manipulation occur. I think it will be quite effective,” he said. “I am confident that if properly implemented, illegal short selling itself will not be possible.” He continued, “Even so, if system improvement is insufficient, the ban on short selling should be extended. “I have the idea that you should approach the market by looking at the market objectively and reasonably, but not the market itself as a one-sided argument.”

Rep. Kim insisted that the Financial Services Commission should finalize and announce the policy at the latest in early February. He stressed, “We have to make a decision by the beginning of February at the latest,” and emphasized, “Another discussion is needed on whether to resume short selling but fully reopen, only the KOSPI market or large stocks.” Regarding the voice insisting that the ban on short selling in the passport is re-extended, “the economy should touch gently rather than unilaterally interpreted by the National Assembly.” We have to do our best.”

However, with signs of overheating in the stock market, such as the recent KOSPI index fluctuating around the 3200 line, “The fear index rises, banks’ credit loans increase, and debt or investments are visible around the world. There is some overheating of investors.” “It will be evaluated later on whether the Korean stock market is in the process of making a new leap forward or whether it is overheating the short-term high. It is difficult to evaluate right now,” he added.
/ Reporter Hyein Lee [email protected]

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