Reported 7 months ago
South Korea is extending the ban on stock short selling until March 30 next year and planning to impose stricter penalties for illegal trades. The ban, initially implemented to combat naked shorting, will be extended until a monitoring system for improper trades is in place. Authorities are considering penalties of up to six times the profit from illegal short selling and life imprisonment for offenders making profits of at least 5 billion won. Despite controversy within the financial sector, the eventual lifting of the ban is seen as a positive move by some to increase liquidity and reduce volatility in South Korea.
Source: YAHOO