Deputy Prime Minister Bakhyun: “Partially resume short selling in mid-June”

Lee Bok-hyun, Director of Financial Supervisory Service/News1,
, ‘Lee Bok-hyun, the Director of the Financial Supervisory Service, hinted at the possibility of partially resuming short selling as early as next month.’,
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, ‘The director stated in a press conference with reporters held immediately after the ‘Invest K-Finance’ investment presentation at the Conrad Downtown Hotel in New York on the 16th that “personally, there is a plan to partially resume short selling in mid-June.” He also emphasized the need to communicate with the market about the technical and institutional deficiencies related to the resumption of short selling in June, saying, “Even if there are technical or institutional shortcomings regarding the resumption in June, it is necessary to hear the opinions of relevant parties on when to proceed with the resumption.”‘
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, ‘Regarding the resumption of short selling, the director also expressed strong agreement with the direction of normalizing short selling, stating, “As short selling can enhance the price discovery function of the overall market, it should be normalized.” He also sympathized with the awareness that the government and authorities advocating for solving the Korea Discount and promoting value-up should not maintain the ban on short selling.’ He further stated, “I will announce whether short selling will resume and the resumption policy before the end of June.”
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, ‘A Financial Supervisory Service official responded to the director’s remarks, saying, “It does not mean definitively pushing for a resumption in June,” emphasizing the need to provide a specific schedule even if a conclusion is not reached by mid-June.’
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, ‘Earlier, financial authorities announced a complete ban on short selling until June this year, stating that improvement measures would be presented by June to address issues raised by the discovery of large-scale illegal short selling by major global investment banks in November last year.’
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