South Korea’s financial watchdog said on Wednesday it had fined global investors over 80 billion won ($55 million) for illegal short selling. The country is set to lift its temporary ban on the stock trading practice at the end of this month.
According to the Financial Supervisory Service (FSS), the Futures and Securities Committee under the Financial Service Commission (FSC) had completed its 16-month probe into suspected illegal short selling by 14 global investment banks (IBs). It levied a combined 83.6 billion won in fines on 13 IBs.
According to Yonhap news agency, the country imposed a temporary ban on the practice in November 2023 after a series of naked short-selling violations involving several global investment banks were discovered.
The financial regulator said earlier that it plans to allow short-selling on all publicly traded companies here.
Before the short-selling ban, only 350 listed firms had been subject to short-selling, namely the constituents of the KOSPI 200 index and the KOSDAQ 150 index.
The short-selling ban is set to be lifted on March 31.
The FSS has been investigating 14 global investors and plans to complete its probe before March 31, when short selling is scheduled to resume.
The country temporarily banned the practice in November 2023 after a series of naked short-selling violations involving several global investment banks were discovered.
Meanwhile, South Korean stocks finished nearly 1.5 percent higher on Wednesday as investors scooped up semiconductor and battery shares despite overnight losses on Wall Street. The local currency rose sharply against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 37.22 points, or 1.47 percent, to close at 2,574.82.
Foreign and institutional investors bought a net of 411.6 billion won, while retail investors unloaded a net of 503.6 billion won.
