South Korea may impose fines of billions of won on two financial companies over illegal short selling, according to Yonhap News Agency.
(Bloomberg) — South Korea may impose fines of billions of won on two financial companies over illegal short selling, according to Yonhap News Agency.
The review will take place during a meeting of the Financial Services Commission on March 8, Yonhap reported, citing unidentified industry sources. If the penalty is imposed, it will be the first such case since a revision was made to the Capital Markets Act in 2021, which now allows fines of up to 100% of the short order amount, Yonhap said.
So far, penalties related to illegal short-sale activities have amounted to only tens of millions of won because the base fine was 60 million won ($46,113) per case. South Korea partially lifted a suspension of stock short-selling in May 2021, after a full ban from March 2020 to May 2021. Last month, FSC Chairman Kim So-young said the regulator is “cautious” about discussing the issue of fully lifting short-selling ban.
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