On 24 February 2021, SK FSC fined 10 overseas financial firms for violations.
- SK FSC decided to impose a total penalty of KRW685mn on 10 overseas financial companies, following results of an investigation into violation of short sale restrictions.
- Follows December 2020 SK FSC updated on bill relating to illegal short-selling.
- There was a case of submitting a sell order (secondary sale) again because the stocks sold were not reflected in the balance, so the company was mistaken for holding them.
- Shareholders submitted a sell order due to incorrect listing and stocking date.
- There was another case of submitting a sell order for stocks that the company does not own, even though they can only acquire gains on the stock price through CFDs.
- Another third case involved intentional violation of the naked short selling regulation.
- The financial authorities will strengthen detection of violations, by shortening the cycle from 6 months to 1 month, and promptly investigate and take action on violations.
- From 6 April 2021, it is mandatory for short selling investors to keep short sale lending transaction information for 5 years, and submit this information if they are requested.
- From 4 April 2021, penalties for illegal and naked short selling will be reinforced.