On 7 May 2024, S Korea's securities regulator, the FSS uncovered an alleged $156m worth of illegal short selling activity by nine unnamed investment banks.

Background

• report claims that the banks violated mostly procedural rules while collectively short selling 164 stocks,
• activity at an additional five banks remains under investigation
• two of the nine banks are already facing penalties imposed by the financial authorities and have been referred to prosecutors for further investigation for allegedly violating the nation’s capital markets law
• the FSS plans to review penalties on the other seven banks
• S Korea has a ban on naked short selling through the end of June 2024