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Photo: YONHAP News
Regarding measures to improve the short selling system, Eun Seong-soo, chairman of the Financial Services Commission, said: “As there are qualified investors in private equity funds, it may be a compromise to allow and expand to those who can take responsibility as professional investors. “
President Eun said at the year-end meeting with inbound and outbound reporters held online (not face-to-face) on the 14th, emphasizing: “Personally, I would like individual investors not to go to the (short sale market) but I will listen to your opinions. “
Short selling is an investment technique that makes a profit by borrowing and selling stocks when the stock price is expected to decline, and then buying and repaying stocks when the stock price drops.
The financial authorities decided to develop a plan to improve the short selling system, as it was constantly pointed out that it was a “playground”, which was disadvantageous for individual investors.
Chairman Eun explained, “There are several computers on the Korean Stock Exchange, and we will further strengthen the specialized system for short selling and shorten the (verification) cycle to suspect illegal short selling.”
President Eun said he will review the plan for a soft landing starting next month for the financial support program that was developed in the response process to Corona 19.
President Eun said: “The plan for a soft landing of financial support measures, such as maturity extension, deferral of interest payments and flexibility of financial regulations, will be determined by gathering input from the financial sector, industry and experts from January next year while watching Corona 19’s progress. “
While massive financial support for small businesses, SMEs and personal debtors suffering from the Corona 19 crisis is unavoidable, it appears that the ‘soft landing card’ was officially formulated as concerns mounted that such debt could lead to financial insolvency in the future. .
However, the president chose “Overcoming the Corona 19 crisis” as the first theme for next year.
Regarding the Corona 19 countermeasure, he emphasized that “the fluid financial support for weak areas, the management of financial risks expanded in the process and the soft landing of expanding financial policies must be achieved in harmony.”
He said: “As the reproliferation of Corona 19 becomes a reality, we will take additional measures, as well as existing measures, if necessary.”
Also mentioned as important tasks were the establishment of a political-type New Deal Fund, the reduction of the maximum interest rate in the second half of next year and the establishment of the Financial Consumer Protection Law.
Looking back on this year, he said: “We are taking the fact that many investors have suffered damage due to the insolvency of some private equity funds.”
Chairman Eun added: “We regret that we learned of the fund’s insolvency a little earlier and failed to monitor it, and we plan to make the necessary efforts to ensure that there is no neglect of investor protection in the future.”
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