Sim Jae-cheol "Short Selling Should Be Abolished... Increasing Uncertainty in the Stock Market"

Shim Jae-cheol, floor leader of the United Future Party, is attending the floor strategy meeting held at the National Assembly on the 17th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Lee Ji-eun] Shim Jae-cheol, floor leader of the United Future Party, demanded the abolition of short selling, which increases uncertainty in the stock market.

On the 25th, Shim held a press conference at the National Assembly and said, "As the floor leader of the main opposition party, I strongly urge the government to abolish short selling, which makes retail investors cry and increases uncertainty in the stock market."

He stated, "The short selling method raises concerns about settlement failures in stock trading, and during market instability, some institutions and foreigners may abuse it as a means for speculative price manipulation. As a result, significant damage can occur to innocent retail investors, and it can harm the soundness of the capital market. Therefore, there have been continuous calls to ban short selling in the domestic stock market."

Shim added, "Furthermore, I hope the government will take strong and decisive measures, such as prohibiting securities trading, against illegal and unfair short selling transactions that exploit the market maker exemption clause. Our party has adopted the bill to ban 'borrowed short selling,' which is gaining strong public demand, as the party's official stance and will do our best to ensure it passes in the National Assembly as soon as possible."

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