Acting President Choi Sang-mok speaks during a meeting on Korean economy at Government Complex Seoul, Feb. 14. Yonhap
Acting President Choi Sang-mok on Friday ordered thorough preparations for the resumption of stock short selling next month, pledging sufficient communication with market participants.
Korea imposed a temporary ban on stock short selling in November 2023 after uncovering a series of naked short selling violations involving several global investment banks. The practice is set to resume on March 31.
During a regular economic meeting attended by the Bank of Korea governor, and the heads of the Financial Services Commission and the Financial Supervisory Service, Choi emphasized the need for "sufficient communication with the market to ensure a smooth transition."
He also urged officials to thoroughly implement follow-up measures, including the development of a monitoring platform designed to detect illegal transactions.
Choi also reiterated his hope for bipartisan cooperation in passing a revision to the law aimed at strengthening protection for minority shareholders.
The proposed revision to the Capital Market Act requires a company's board of directors to safeguard shareholders' rights in cases of mergers and acquisitions, corporate split-offs, share swaps and asset transfers. (Yonhap)
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