Hantuyeon Demands Reform of Short Selling System... Launches 'K-Stop Movement'

[Asia Economy Reporter Park Jihwan] The Korea Stock Investors Association (KOSIA) has called for reforms to the current short-selling system and its framework, which are disadvantageous to individual investors. KOSIA announced on the 1st that it will operate a short-selling reform bus starting from the 2nd and will carry out the 'K-Stop Short Selling Bankruptcy Movement' (K-Stop Movement) around Korea's Liberation Day in August to resist short selling.

In a statement released that day, KOSIA emphasized, "With over 10 million individual stock investors and net purchase volumes exceeding 100 trillion won, the short-selling system favors only foreigners and institutions, relegating individual investors to victims," adding, "We must open a new era through reforming the short-selling system."

KOSIA demanded in the current short-selling system the following: △ unifying the mandatory short-selling repayment period to 60 days △ legislating collateral ratios of 140%, and 150% for institutions and foreigners △ setting short-selling limits by participant △ establishing a real-time monitoring system for illegal short selling.

KOSIA also pointed out problems with the full taxation bill on capital gains tax for individual investors' stock transfers scheduled for implementation in 2023, arguing that it benefits only foreigners and institutions and should be abolished or completely revised.

Jung Eui-jung, KOSIA’s representative, will hold a meeting on the 2nd with former party leader and ruling party presidential candidate Lee Nak-yeon. Representative Jung stated, "As the presidential election season approaches, we will actively support candidates who include these proposals in their election pledges and help them win within the legal framework," adding, "We will contact various presidential candidates to ask them to create a fair stock market instead of a tilted playing field so that individual investors can invest with peace of mind."

KOSIA plans to operate the short-selling reform bus for one month starting from the 2nd. This bus will carry messages pointing out the need for short-selling system reform and issues related to capital gains tax on stocks. KOSIA also operated an anti-short-selling bus in February.

KOSIA intends to carry out the K-Stop Movement, a Korean version of the GameStop movement, around Liberation Day. The movement plans to purchase '4 shares, 44 shares, and 444 shares' of stocks that have gathered consensus among the top short-selling balance stocks announced in the Korea Exchange's 'Short Selling Daily Brief.'

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