Prime Minister Jeong: "Start with Improving the Short Selling System... The Current Method Is Problematic"

"Measures to Improve or Supplement the Short Selling System Are Needed"

Prime Minister Chung Sye-kyun is delivering opening remarks at the 'Central Disaster and Safety Countermeasure Headquarters Meeting for COVID-19' held on the 17th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Han Jinju] Prime Minister Chung Sye-kyun expressed the view that institutional improvements must precede the resumption of short selling amid the ongoing controversy.

On the 20th, Prime Minister Chung said on YTN's "News Evening," "The short selling system in our country has not been operated desirably so far. There must be improvement or supplementary measures for the system that has been mismanaged."

Prime Minister Chung stated, "It is not desirable to resume this without prior institutional improvements." This remark is similar in context to the opinion that the ban on short selling, which ends on March 15, should be extended. The ruling party also predominantly supports extending the short selling ban.

Prime Minister Chung emphasized, "Foreign and institutional investors did not properly follow the rules, and relatively small-scale and individual investors have a sense of victimization. Healing for that should come first."

He pointed out, "This system is not unique to South Korea; all countries have it, so we have no choice but to respect the global standard, but it is problematic to operate it in the way it has been so far."

Regarding the government's plan to achieve herd immunity against COVID-19 by November, Prime Minister Chung said, "For herd immunity to be achieved by then, 60 to 70% of the population must complete their second vaccination by September."

He added, "It is not certain, but as far as is known, the effect appears within 60 days after vaccination," and "If vaccinated by the end of September, the effect will appear by November."

This content was produced with the assistance of AI translation services.