Jung Sye-kyun: "Short Selling is a Global Standard... Cannot Keep Banning It"

Broadcast Journalists Club Debate

Prime Minister Chung Sye-kyun is speaking at a Broadcasting Reporters Club debate held at the Korea Artists Center in Mok-dong, Seoul on the 28th. 2021.1.28 Photo by Yonhap News

[Asia Economy Reporter Son Seon-hee] Prime Minister Chung Sye-kyun said on the 28th that the short-selling system in the stock market is a "global standard" because all member countries of the Organization for Economic Cooperation and Development (OECD) have this system, adding, "South Korea cannot continue to extend the ban on short selling alone." However, he added, "The flawed parts of this system must be improved first."

At a Broadcasting Reporters Club discussion held at the Korea Artists Center in Yangcheon-gu, Seoul, on the morning of the same day, Prime Minister Chung said, "Implementing the system after improving the problems will resolve side effects and align with international standards," adding, "The Financial Services Commission is making such efforts."

He also pointed out, "If short selling is properly operated according to its original purpose, individual investors would not have to worry," and said, "So far, foreign investors and institutional investors have been able to enjoy the system well, but there has been unfairness and inequality for individuals." He went on to criticize, "The problem is that domestic institutional investors did not properly follow the law, and they were not held properly accountable."