The Financial Services Commission will impose an obligation to report to the financial authorities 90 days after the loan for short selling purposes.
According to the Financial Services Commission on the 29th, it announced a change in the regulations of the 'partial revision of the financial investment business regulations'.
The change in regulations is a follow-up to the measures announced on July 28 jointly by related agencies to strengthen the detection and punishment of illegal short selling and supplement the system related to short selling.
The Financial Services Commission has so far judged that there is a lack of separate monitoring when institutions or foreigners make long-term loans for more than 90 days.
Under the current law, loan transaction information by purpose and period is not reported separately, and it was unclear whether the report on large-scale holding of short selling balances included information on the difference in taxation.
It is judged that it is impossible for financial authorities to systematically monitor loan transactions for short selling purposes in advance. Accordingly, the government will revise regulations to strengthen monitoring of loan information.
It is obliged to report to the financial authorities 90 days after the loan for short selling purposes. The financial authorities plan to use this as a clue to extracting suspected unfair trade transactions such as market price manipulation.
It will also be actively used for theme checks by the Korea Exchange, the Financial Supervisory Service and the prosecution.
Reporter Lee Ji-sun stockmk2020@infostock.co.kr
