“South Korea’s Watchdog Discovers Short-Selling Rule Violations by Seven More Banks” – Seoul’s market watchdog announced on Monday (May 6) that it had identified breaches of short-selling rules by seven additional banks in the domestic stock market, as part of a comprehensive investigation into trading practices at foreign investment banks.
“South Korea Implements Short-Selling Ban After Uncovering Illegal Trading by Foreign Firms” – Last November, South Korea imposed a ban on short selling of stocks in the domestic market following the discovery of illegal trading by two foreign firms in October. A special investigation was initiated to scrutinize trading practices at other banks.
“FSS Interim Report: Nine Banks Found in Violation of Trading Rules, Totaling 211.2 Billion Won” – In its interim investigation results released on Monday, the Financial Supervisory Service (FSS) revealed that it had discovered illegal trading by nine banks, including two already fined, out of 14 foreign investment banks. The violations totaled 211.2 billion won (US$154.76 million).
“FSS Continues Investigation on Five Banks Amid Short-Selling Probe” – The Financial Supervisory Service (FSS) stated that the other five banks were still under investigation, without disclosing their names, as part of the ongoing short-selling probe.
Credit Suisse AG Faces Potential 50 Billion Won Fine Over Short-Selling Rule Breach: Reports” – South Korea’s Chosun Ilbo daily reported on Thursday that financial authorities had informed Credit Suisse AG of the possibility of a 50 billion won fine regarding allegations of breaching short-selling rules.
In South Korea, the Capital Markets Act bans “naked” short selling of stocks, in which an investor short sells shares without first borrowing them or determining they can be borrowed.
The FSS said it is cooperating with authorities in Hong Kong on its investigation and plans to visit the city this month for a meeting to explain South Korea’s short-selling regulations.
Last month, the watchdog prepared a new monitoring mechanism to better detect short-selling breaches in the stock market.
