South Korea – FSC Proposed Changes to Short Selling Rules

South Korea – FSC Proposed Changes to Short Selling Rules

On 25 February 2021, SK FSC proposed amending capital market research regulations.

  • To establish specific guidelines for imposing fines for those who violate the obligation to store and submit loan transaction information for the purpose of short selling.
  • If there is a final judgment of court fine for the same case after the imposition of the penalty, the measures may be canceled or changed by ex officio reconsideration.
  • Stipulates how calculations for the amount of penalty for illegal short selling and for violation of the obligation to store and submit loan transaction information are made.
  • Clarify investigating agency for short selling cases that cause widespread controversy.
  • Comments are to be submitted by 7 March 2021.