On 26 December 2023, SK FSC discussed meeting of SK FSC (of December 22) re above, where it ruled 2 global investment banks' (IBs) long-term non-leveraged short selling orders and consignments violated law; decided to file complaint, imposed KRW 26.52bn fine.

• SK FSC said this violation was of short selling restrictions under Capital markets act.
• This press release includes diagram depicting the charges against 2 IBs in more detail.
• SK FSC discussed precautions as well as future plans, i.e. active efforts by capital market participants are important to eradicate violations of short selling regulations.
• They are also important to improve the soundness and reliability of the capital market.
• Severe sanctions are imposed on short-selling violations under act, i.e. un-leveraged short-selling, and legal sanctions may also be imposed on custodian securities firms.
• Foreign financial institutions and domestic financial companies investing in the domestic stock market are requested to make every effort in order to maintain as well as strengthen related internal control systems and train executives and employees.
• Despite efforts to create a friendly investment environment for foreign investors, fails by global IBs have been discovered, requiring strict action, prevention of recurrence.
• It reminded of its ongoing investigation re eradicating illegal short-selling; confirmed its plans to actively pursue establishment of short-selling computer system.