Financial Services Commission: "No Warning Received from FTSE Regarding Short Selling"

[Asia Economy Reporter Ji Yeon-jin] On the 4th, the Financial Services Commission denied reports that it had received a warning from the UK Financial Times Stock Exchange (FTSE) Group that if the short-selling ban is extended again, South Korea would be excluded from the FTSE Developed Markets Index.

In a clarification statement on the same day, the Financial Services Commission stated, "We have not received any letter from FTSE indicating that maintaining the short-selling ban would result in South Korea being excluded from the FTSE Developed Markets Index, so we ask for caution in reporting."

Earlier, one of the main reasons the Financial Services Commission decided to allow limited short-selling on KOSPI 200 and KOSDAQ 150 stocks starting in May was reportedly due to warnings from the global financial investment industry.

It was reported that the FTSE Group sent a letter to the Capital Markets Division of the Financial Services Commission in mid-last month amid controversy over the extension of the short-selling ban, stating that South Korea could be excluded from the FTSE Developed Markets Index.

The FTSE index is mainly used by European investment firms, and South Korea was included in the FTSE Developed Markets Index in 2009. Being included in the Developed Markets Index is known to lead global asset management companies to regard South Korea as a developed market and increase their investment allocation accordingly.

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