• SK FSC, SK FSS, SK GVT proposed amendments to Enforcement decree of the capital market and financial investment business act and Capital market business regulations.
• Follows SK FSC November 2024 proposed revisions to statutes on short selling.
• Also follows SK FSC, SK FSS December 2024 held third unfair trade investigation.

Amendments

• Set out procedures to be carried out by financial companies that are requested to suspend payment for accounts suspected of unfair trading or illegal short selling.
• Requirements for imposing restrictions on financial investment product transactions, appointment and tenure of executives, and criteria for calculating period of restriction.
• Stipulate transactions excluded from the restriction orders; details such as adding financial companies to firms subject to appointment/reappointment restriction order.
• Stipulate reasons for cancellation of financial investment company license, dismissal of officers and employees, or suspension from work, such as failure to comply with payment suspension measures, failure to refuse transactions with restricted persons.
• SK FSC, SK FSS, KRX, financial investment industry-related organizations may process data containing personal information or personal identification numbers, if doing so is unavoidable to perform work related to payment suspension or restriction orders.
• Stipulates standards for imposing fines on those who fail to fulfill their obligations.

Consultation Period

• Comments should be submitted by 2 February 2025.