Brokerages in Korea raked in a combined 23.61 billion won ($16.5 million) in fees from handling stock short selling in the first half of this year, data showed Tuesday.
Short selling is under fire once again in Korea after dramatic falls in stock prices, and the financial regulators are taking aim.
Morgan Stanley is being investigated for illegal short selling by the Financial Supervisory Service (FSS), according to local press reports.
Korea's financial regulator vowed to take a firmer stance against illegal short selling and seek to revise laws if necessary.
In market collapses, many lose and some win, and win big. Short sellers and other contrarians can do well in the panic.
The sky didn’t fall as short selling was allowed again, despite some fears that the indexes would collapse once speculators got their chance.
The proportion of stock short selling in Korea accounted for 3.4 percent of total transactions in the first week of the practice's conditional resumption last week.
Korea's stock market tumbled Monday as a ban on short selling was partially lifted after nearly 14 months.
Short selling restrictions in Korea will be partially lifted Monday – more than a year after the financial regulator imposed a prohibition on the practice when stock prices collapsed as the pandemic started.
With short selling permitted again in two weeks, brokerages are busy sorting out which stocks might be targeted.