Lee Bok-hyun, Financial Supervisory Service Chief, Urgently Reviews 'Jackson Hole Shock'... "Short Selling Investigation Team Activated"

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[Asia Economy Reporter Ji Yeon-jin] On the morning of the 29th, Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), held an "Emergency Financial Market Situation Review Meeting" and stated, "It is necessary to prepare more thoroughly to respond to increased uncertainty and to protect financial consumers." He added, "We will establish and operate a 'Short Selling Investigation Team' within this week to promptly investigate illegal short selling and strictly punish illegal and unfair activities."

The Governor explained, "In addition to strengthening investigations into illegal short selling, we will focus supervisory and inspection capabilities on the actual conditions of the short selling market to continuously work on correcting operational distortions."

He also announced plans to support easier foreign currency procurement at the private level by utilizing overseas government bonds held by domestic financial companies. To this end, the FSS will issue a 'Non-Action Opinion Letter' to financial companies engaged in foreign exchange transactions today.

The Governor emphasized, "We will continuously explore ways to expand financial consumers' choices during the interest rate hike period and encourage banks' autonomous interest rate competition," adding, "We will support the smooth implementation of government support programs to protect vulnerable groups during the interest rate hike period and also expand autonomous support programs within the financial sector."

He explained, "Although external uncertainties are increasing due to persistent global high inflation and monetary tightening trends, our economy maintains sound external stability with a high level of foreign exchange reserves and relatively solid growth fundamentals," and added, "Considering that the domestic financial industry's structural improvements have been continuously pursued through past crises, resulting in significant improvements in asset soundness and foreign currency liquidity, we can sufficiently withstand the deteriorated external conditions."

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