Article: Fines Imposed on Foreign Investors Engaged in Naked Short Selling

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Fines Imposed on Foreign Investors Engaged in Naked Short Selling

Yoon Young-sil, 18 September 2020

The Securities and Futures Commission has decided to impose a fine of 730 million won on four foreign asset management companies and pension funds that conducted naked short selling. The Korea Exchange detected the violation of the law prohibiting it during regular market monitoring.

Short selling is to sell a stock and then buy it back at a lower price. Stock borrowing must precede selling according to the current law on short selling.

According to the Financial Services Commission, the four organizations were wrong about whether they concluded stock borrowing contracts or were in possession of stocks and placed sell orders without owning or borrowing stocks. This occurred before the implementation of the temporary short selling ban in March this year.

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Article: Goldman Sachs Fined 7.5 Bil. Won for Naked Short Selling of Stocks in S. Korea

Article - Media, Publications

Goldman Sachs Fined 7.5 Bil. Won for Naked Short Selling of Stocks in S. Korea

Yoon Young-sil, 29 November 2018

South Korea’s financial authorities have imposed the biggest ever fine on Goldman Sachs Group for its naked short selling activities.

The Securities & Futures Commission (SFC), an investigative body of the Financial Services Commission (FSC), decided on Nov. 28 to impose a 7.5 billion won ($6.65 million) in fine on Goldman Sachs Group’s subsidiary Goldman Sachs International for violating the short selling rules. Continue reading “Article: Goldman Sachs Fined 7.5 Bil. Won for Naked Short Selling of Stocks in S. Korea”