S.Korea regulator fines two firms for naked shorts under stricter law
SEOUL (Reuters) – South Korea’s financial regulator fined two firms for naked short selling in the local stock market, for the first time under the new law of heavier penalties.
A statement by the Financial Services Commission on Wednesday stated that they had each been fined 2.18 billion won (and 3.87 billion Won) for illicit trading between 2021 and 21.
These were among the first to be punished under the Capital Markets Act, which was amended in April 2021. According to FSC, the maximum fines for illegal profits exceeding 100 million won has been raised to five times.
Naked short selling of stocks – in which an investor short sells shares without first borrowing them or determining they can be borrowed – is banned by the Capital Markets Act in South Korea.
In the statement, the Commission didn’t name any of the companies.
Jihoon Le (Reporting)
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