[2022 National Audit] Financial Services Commission Chairman: "Amend the Law to Disclose Names of Corporations Engaged in Illegal Short Selling"

[Image source=Yonhap News]

[Asia Economy Reporters Ji Yeon-jin, Lee Jung-yoon] Kim Ju-hyun, Chairman of the Financial Services Commission, stated on the 6th, "We will discuss the direction of disclosing the names of corporations involved in illegal short selling, even if it requires amending the law."

During the Financial Services Commission's audit by the National Assembly's Political Affairs Committee that morning, when Yoo Ui-dong, a member of the People Power Party, pointed out, "Among 127 cases of illegal short selling, 8 cases involve domestic securities firms, and the rest are foreign, but due to the Real Name Financial Transactions Act, the names are not being disclosed," Kim said, "We have completed an internal review related to the real-name system," and made this announcement.

He added, "I fully agree with the criticism that continued concealment only increases public distrust."

On the same day, Representative Yoo stated, "It is true that the public's view of short selling is unfavorable regardless of its function," and pointed out, "94% of illegal short selling is by foreigners, and since we do not even know who they are, controversies over its positive functions persist, and public trust in the short selling function is steadily declining."

He urged, "There are voices in the market that misunderstand the Financial Services Commission is deliberately protecting illegal short selling forces. The position on Article 4, Paragraph 4 of the Real Name Financial Transactions Act must be clearly presented, and alternatives must be created."

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