[시사뉴스 김성훈 기자]
With the KOSPI surpassing the 3000 line and sprinting upward, the’resuming of short selling’, two months ahead, is becoming controversial again. This is because Park Yong-jin, a member of the National Assembly’s Political Affairs Committee, and Democratic Party lawmaker Park Yong-jin called for a review, and the opposition from individual investors is increasing.
According to the Financial Services Commission on the 8th, short selling will resume on March 16th. The ban on short selling, which was scheduled to end on September 15 last year, has been extended for six months until March 15.
Earlier, the Financial Services Commission banned short selling of all listed stocks in the securities, KOSDAQ, and KONEX markets for six months from March 16 to September 15 last year to respond to the novel coronavirus infection (Corona 19). However, contrary to the original expectations, as Corona 19 did not end but rather re-proliferated, the financial authorities decided to extend it, fearing that market volatility would increase.
Short selling is a trading technique in which a stock of a stock that is expected to decline in stock price is borrowed and sold, and if the stock price actually falls, it is bought back at a low price and repays the borrowed stock to obtain a profit. There are two types of short selling, which is borrowed and sold by borrowing stocks, and short selling without borrowing, which is sold in advance without holding it.
Until now, individual investors have objected to short selling, saying that it is a’sloping playground’ occupied by foreign and institutional investors. After the ban on short selling last year, both the KOSPI and KOSDAQ rose thanks to the active buying trend of individuals, and in particular, the KOSPI exceeded the 3000 line this year.
Although the investment industry predicted that the stock market will rise this year, it has also cited the resumption of short selling as a variable. In this situation, as the time to resume short selling approaches, there is a high voice that it needs to be reviewed.
Rep. Park Yong-jin pointed out that even during the period of banning short selling, cases suspected of short selling are being caught, and insisted that the resumption of short selling should be postponed until a system is established to reliably block market unfair behavior by foreigners and institutions.
Rep. Park appeared on a news show on CBS Radio Kim Hyun-jung the day before and said, “Foreigners, institutions, etc., called short selling forces, are making a loss for stock investors by selling and buying falsely. If you have to be punished strongly, it is highly likely that the punishment will end with a cotton bat.”
“As long as the dominant position in the market is abused and information asymmetry exists and cannot be blocked, short selling will become foul and unfair in itself.” I urged