Article: Regulator to take stern actions against illegal short selling

Article - Media, Publications

Regulator to take stern actions against illegal short selling

Yonhap, 03 May 2021

South Korea’s financial regulator said Monday the country will take stern actions against illegal activities involving stock short selling as it allowed a partial resumption of short selling after a 14-month ban.

The Financial Services Commission (FSC) partially lifted its ban on short selling of some listed stocks after it imposed a six-month ban on the trading strategy in March last year and later extended it to ease market routs caused by the pandemic.

Short selling is a trading strategy in which investors sell stocks they borrowed on the belief that share prices will fall in the near future. When the prices decline, they can buy back the stocks at lower prices, pocket the profit and return the shares to the original owner. Continue reading “Article: Regulator to take stern actions against illegal short selling”

Article: (LEAD) Goldman Sachs fined 7.5 bln won for illegal naked short selling in S. Korea

Article - Media, Publications

(LEAD) Goldman Sachs fined 7.5 bln won for illegal naked short selling in S. Korea

Yonhap News Agency, 28 November 2018

South Korea’s financial regulator said Wednesday it decided to fine the Seoul branch of Goldman Sachs Group Inc. 7.5 million won (US$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 South 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. Continue reading “Article: (LEAD) Goldman Sachs fined 7.5 bln won for illegal naked short selling in S. Korea”