Korea’s financial watchdog has imposed nearly 4 billion won in fines on six local and foreign financial firms for illegal short selling, the largest single batch of penalties since the practice resumed last year.
Short-selling transactions rose to the highest in over two years when the Korean stock market crashed earlier this week on AI valuation concerns, industry data showed Thursday.
Short selling amounted to 6.4 trillion won in the first week after a ban was lifted.
The Kospi closed below the 2,500 threshold at 2,481.12 with the resumption of short selling and rising trade war concerns.
Short selling will fully resume in Korea’s stock market on Monday, ending a 17-month suspension that began on Nov. 5, 2023, to curb naked short selling.
The Financial Services Commission reaffirmed that the ban on short selling will be lifted at the end of the month as the agency convened a meeting to assess preparations.
A demonstration of illegal short selling is conducted at the Korea Exchange in Yeouido, western Seoul, on March 19.
Korea's short selling ban ends March 31, potentially increasing foreign investment but causing short-term market volatility.
Korea's financial watchdog chief advocates for expanding short selling on more stocks as the country resumes the practice next month.
Korea Exchange completed the development of a centralized detection system for short-selling transactions aimed at preventing any illegal trading by institutional investors, the country’s bourse operator said Sunday.
Korea JoongAng Daily Sitemap
