Presidential office: “Will not resume short selling… FSS Governor Eun Sung-soo’s personal hope”

Director “Resuming short selling in June even partially driven by personal greed”
Contradicted by the Blue House, “Principles Remain Unchanged”
“Cannot lift ban until illegal short selling prevention system is in place”,

[Seoul=Newsis] Reporter Jeon Sun-gi = Policy Director Seong Tae-yoon is giving a briefing on foreign direct purchase policy at the presidential office in Yongsan, Seoul on the 20th. 2024.05.20. photo1006@newsis.com,
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, ‘[Seoul=Newsis] Park Mi-young Kim Seung-min Reporter = The Blue House on the 22nd firmly stated its policy of maintaining the ban on short selling until measures to prevent adverse effects are in place, in response to Financial Supervisory Service (FSS) Governor Lee Bok-hyun’s indication of a potential resumption of short selling, calling it a “personal hope.” ‘,
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, ‘A senior Blue House official, during a meeting with reporters at the presidential office in Yongsan on that day, reiterated the government’s consistent stance on short selling, emphasizing that the ban on short selling will not be lifted until illegal short selling issues are resolved and a reliable system for investors is in place.’,
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, ‘He explained, “The government’s stance on short selling is clear. Until illegal short selling issues are resolved and a reliable system for investors is in place, short selling will not resume.” ‘,
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, ‘Previously, Governor Lee had indicated at an ‘Invest K-Finance’ investor conference held in New York on the 16th local time that he personally hopes to resume short selling partially even in June, but he will announce the predictable resumption timing only if technical issues are resolved.’,
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, ‘He also stated that there is a need to communicate with the market about the timing of resuming short selling, even if there are technical and institutional shortcomings related to the resumption in June.’,
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, ‘Concerns arose among individual investors as it was interpreted that he expressed the intention to resume short selling, which had been completely banned by the government earlier, even before the end of June.’,
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, ‘Financial authorities drew a line, saying that what Governor Lee suggested was that short selling should be normalized to increase overall market trading volume but not a statement about setting a specific resumption timing.’,
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, “President Yoon has repeatedly emphasized the principle of ‘building the electronic system first and then lifting restrictions’ regarding the ban on short selling.”,
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, ‘President Yoon stated in his first New Year’s briefing on January 4th this year, “We will continue to ban short selling until an electronic system that can completely resolve side effects is firmly established.”‘,
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, ‘At a public hearing held at the Korea Exchange on January 17th, he also stated, “Although short selling is banned until June, if clear measures to prevent side effects are not prepared, there is absolutely no intention to resume it.” He also responded to the criticism that the ban on short selling was only for the general election by saying, “It is not a temporary measure.”‘,
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, ‘Following that, at a follow-up meeting on April 4th to check for measures after the public hearing, he went further to say, “Seeing the recent increase in foreign investments in the stock market, abolishing short selling policy was the right decision.”‘,
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