“It will take 10 months to build the short selling system”,
, ‘Chairman Chung Eun-bo of the Korea Exchange (photo) stated his intention to create an ecosystem where underperforming companies are promptly delisted in order to advance the capital market. He mentioned that it will take at least 10 months to establish a computer system to check and block illegal short selling, implying that it would be difficult for short selling to resume this year.’,
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, ‘At a press conference marking his 100th day in office at the Korea Exchange in Yeouido, Seoul on the 24th, Chairman Chung emphasized, “There are about 2,600 listed companies in Korea, which is a lot compared to major advanced countries,” and said, “Underperforming companies need to be delisted based on principles so that investment demand can shift to other healthy companies.” He added, “If necessary, we will commission services to gather various opinions and actively review delisting of listed companies in accordance with principles through consultation with relevant authorities.”‘,
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, ‘Chairman Chung expected that it will take a minimum of 10 months to establish a short selling computer system. He explained, “I think it will take about a year to develop a short selling computer system, and we could shorten it to about 10 months at most,” and added, “Efforts will be made to shorten the time, but it is not just about shortening the time, but how to create a stable detection system is also a very important task.” Industry insiders speculate that resuming short selling this year would be difficult based on this. The Office of the President previously reaffirmed its position not to resume short selling until the short selling computer system is in place. Short selling has been prohibited for all stocks in the domestic stock market since November of last year.’,
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, ‘Chairman Chung emphasized that an incentive structure based on autonomy is the principle of the corporate value-up program. Regarding criticism of the corporate value-up program as being superficial, he explained, “Contrary to Japan’s autonomy-based value-up program or China’s regulation-based value-up program, Korea has added incentives,” and said, “The Ministry of Economy and Finance is considering tax incentives, and the exchange is preparing various incentives such as English disclosure support and relaxation of accounting audits.”‘,
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, ‘Meanwhile, the exchange announced on the 24th that it has finalized the ‘Guidelines for Corporate Value Enhancement Plans’. The exchange plans to send disclosure guidelines to all listed companies on the 27th. Starting with companies prepared for listing, they will disclose ‘corporate value enhancement plans’ containing specific goals and execution plans for enhancing corporate information and value.’,
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