Goldman Sachs fined 7.5 billion won for naked short selling

Finance

Goldman Sachs fined 7.5 billion won for naked short selling

Korea’s financial regulator said Wednesday it decided to fine the Seoul branch of Goldman Sachs Group 7.5 billion won ($6.66 million) for carrying out naked short selling, which is illegal here.

It marked the largest fine against a financial institution for violating the rules that ban such short selling in Korea.

Market watchers had expected the Financial Services Commission (FSC) to slap a fine of up to 1 billion won against Goldman Sachs for naked short selling, which was carried out in late May.

A short selling transaction was made by Goldman Sachs in late May, but about 1.3 million shares worth some 6 billion won were not delivered for settlement until two days later, according to financial authorities.

Yonhap