South Korea’s President Yoon Suk-yeol has asked financial authorities to come up with steps to prevent illegal activities linked to short-selling of stocks, Yonhap news agency said on Thursday.
Yoon said on Wednesday “relevant agencies, such as financial authorities and prosecution, should draw up measures with the aim of eradicating illegal activities surrounding short-selling,” the agency reported, citing the presidential office.
South Korea allows limited short-selling of locally listed stocks, but retail investors have complained that the practice mainly benefits big institutional and foreign investors and keeps stock prices artificially low.
Soon after Yoon’s comment, officials from agencies including the Supreme Prosecutor’s Office, the Financial Supervisory Service and the Korea Exchange held a meeting to discuss the issue, Yonhap said.
- Reuters with additional editing by Jim Pollard