Two companies fined for violating Korean short-selling rules

Financial Services Commission Chairman Kim Joo-hyun [NEWS1]

The financial regulators fined two companies for violating short-selling regulations.

The Financial Services Commission said on Wednesday two companies have been fined 2.18 billion won ($1.65 million) and 3.87 billion won respectively for the violations of short-selling regulations.

They violated regulations on naked short-selling. One company short sold 25.14 billion won worth of common stock it does not hold, while another firm short sold 7.33 billion won worth of common stock it doesn’t own.

The FSC said the Wednesday decision was arrived after a series of in-depth discussions.

“We will continue to strictly respond to violations of short-selling regulations under close cooperation with relevant institutions,” said the FSC in a statement.

BY JIN MIN-JI [jin.minji@joongang.co.kr]