Lee Bok-hyun, Financial Supervisory Service Chief, "Procedures to Hold Accountable for Naked Short Selling Continue"

Lee Bok-hyun, Governor of the Financial Supervisory Service [Photo by Financial Supervisory Service]

[Asia Economy Reporter Lee Jung-yoon] Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), stated regarding naked short selling, "I have observed naked short selling on the exchange for about a month and a half, and the process of holding parties accountable for naked short selling will continue."

At a press conference marking his 100th day in office held at the FSS in Yeouido, Seoul on the 15th, Governor Lee explained, "Rather than shutting down the short selling system itself, if individual investors are given equal opportunities to short sell easily when prices fall, misunderstandings about the short selling system can be resolved."

Regarding unfair trading by asset management companies, he said, "No matter how much we respect market functions or the roles of asset management companies, such issues cannot simply be overlooked," adding, "If any illegal activities are found, we have no choice but to respond as strongly as possible." Governor Lee also mentioned, "We will respond strongly to some asset management companies' improper operations, and we are currently inspecting some large asset management firms," adding, "Even during the private equity fund incident, and looking at some practices in asset management, there are times when it feels like they are only focused on short-term gains."

Previously, the FSS decided to suspend duties and impose fines on Kang Bang-cheon, former chairman of Asset Plus Asset Management, who was suspected of nominee investments. In June, John Lee, former CEO of Meritz Asset Management, resigned from his position after being investigated by the FSS over nominee investment suspicions.

Additionally, Governor Lee addressed the determination of securities characteristics of virtual currencies, stating, "I have a different view from those who say that there is absolutely no part of some broadly defined virtual assets that can be recognized as financial investment products or securities," and added, "I have provided opinions and materials to relevant agencies that some can be judged as securities."

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