“Resume short selling” Yong-jin Park, formerly appointed to the Financial Services Commission

Input 2021.01.17 14:29 | Revision 2021.01.17 14:45

“When and how the problem will be resolved”
It seems to have stepped back from the stance against the resumption of short selling

On the 17th, Democratic Party lawmaker Park Yong-jin told the Financial Services Commission, “It is irresponsible to resume short selling without a roadmap for improving the system and preventing illegal activities.” Rep. Park posted a post on Facebook on the same day entitled,’Financial Commission officials who ignore the Prime Minister, are confident in improving the unfair short selling system.’

Short selling is an investment method in which a stock is borrowed and sold, and when the stock price falls, the stock is repurchased and repaid to make a profit. The government banned short selling for six months for the purpose of stabilizing the market in March after the stock price plunged due to the Corona 19 incident earlier last year. This measure was extended once more in September and is expected to end on March 16th.

Rep. Park said, “The Financial Services Commission is trying to promote financial policies without even a roadmap for short selling policies in a way that fits into the conclusion of’Resume short selling in March’.” He said, “The issue of resumption of short selling is not a matter that can only be decided at the level of the Financial Services Commission,” he said. Said.

Rep. Park said, “However, on the evening of the 11th, the Financial Services Commission urgently distributed a text message to reporters stating,’Plan to finish system improvement with the goal of resuming short selling in March’, and on the 14th, regarding the resumption of short selling by the Prime Minister.’ The government actually refuted the unconfirmed remarks,” he said, “reaffirming that the goal is to resume short selling in March.” He said, “I wonder why the officials of the Financial Services Commission are doing such a de facto surpassing act.”

Rep. Park said, “I ask the Financial Services Commission. I hope to make a roadmap of improvements related to short selling,” he said. “It is not just an announcement that it is a plan or a plan, but what problems will be resolved in detail when and how.” previously “It is evaluated that the permit of short selling should be postponed,” “Reconsider the resumption of short selling,” and it is said that they have stepped back from the strong opposition. The dot seems to have had an effect.

Rep. Park then insisted that securities firms should be held jointly liable for illegal short selling. Rep. Park said, “It is natural for securities companies that acquire exclusive licenses to make transactions in the market and earn money to block and inspect illegal activities.” “You have to take responsibility.”

In addition, the Financial Supervisory Service should re-investigate and severely punish the illegal short selling activities of market makers, which were confirmed to have been discovered that market makers made illegal short selling during the short selling ban.