[이코노믹리뷰=정다희 기자] Along with Democratic Party lawmaker Park Yong-jin, he announced that he would propose an amendment to the Capital Markets Act, which would prevent the possibility of forgery or falsification of evidence and preventing unborrowed short selling through computerized short selling of securities companies. He also said that the resumption of short selling should be done after system improvements have been made.
Rep. Park Yong-jin held a press conference at the National Assembly on the 24th and said, “The monitoring mentioned by the Financial Services Commission so far puts weight on the approach to follow-up detection.” There is a high possibility that they will not receive.”
In order to improve the short-selling system, Congressman Park proposed a plan to have an electronic system that allows a securities company to place a sell order after checking whether the securities company owns the stock borrowed through the electronic system before selling, and put in a mandate for the financial authorities to manage and supervise it. Dam announced that he would propose an amendment.
The Financial Services Commission announced in December that it is promoting the establishment of a short sale monitoring system, strengthening regular inspections, development of new extraction techniques, and establishment of organizations as measures to monitor illegal short selling. Rep. Park said, “There is a concern that it will turn into an ineffective alternative by referring to the’continuous promotion’ for the (Financial Commission) comprehensive short selling status monitoring system and the extraction of abnormal short selling transactions such as pre-sell and post-borrow, which are key issues.” Pointed out.
Rep. Park also argued that the Financial Services Commission was concealing and reducing the results of the market maker’s illegal short selling investigation announced in December last year. According to the results of the supervision of the exchange, confirmed by Congressman Park, three market makers out of 22 market makers were found to have made illegal short selling over the 20th, 8th and 1st, respectively.
Rep. Park said, “The Financial Services Commission is reluctant to disclose specific details such as the short selling quantity and item of this survey for security reasons.” said.
The Financial Supervisory Service also pointed out what was excluded from the investigation. Rep. Park said, “The Financial Services Commission is inviting suspicion of concealing the case by ignoring the usual procedures in this investigation and’passing’ the Financial Supervisory Service.” “The Financial Supervisory Service has allowed the Financial Supervisory Service to re-investigate the illegal activities of market makers. It is necessary to ensure that the section on short selling and illegal activities can be included in the FSS’ comprehensive inspection.”
Financial authorities such as the Financial Services Commission urged them to prepare concrete measures to prevent the recurrence of illegal short selling.
Rep. Park said, “If there is no’own balance management system’ or’loan trading platform’ as the enforcement decree of this legislative notice, it will only store the evidence data exchanged by handwriting, messenger, and e-mail on an external hard drive.” “Financial authorities should strictly punish this illegal activity to gain public trust and come up with concrete measures to prevent recurrence.”