Financial Services Commission Chairman Also Receiving 'Specific Stock Recommendation' Messages... "Unhealthy Practices Widespread"

Personal Short Selling Qualification Acquisition System Opens on the 20th
Financial Services Commission Chairman Eun Seong-su Visits Exchange to Inspect Short Selling System

Financial Services Commission Chairman Eun Sung-soo is meeting with representatives of card companies, capital companies, and savings banks at the Korea Federation of Banks in Jung-gu, Seoul, on the 9th to discuss measures for the establishment of the Financial Consumer Protection Act (FCP Act) and key current issues. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Ji Yeon-jin] Eun Sung-soo, Chairman of the Financial Services Commission, pointed out on the 15th, "I think unhealthy behaviors are widespread around us to the extent that I also occasionally receive text messages recommending specific stocks."

On the same day, Chairman Eun visited the Korea Exchange in Yeouido, Seoul, to check the preparations for the resumption of short selling and the stock market trends. He said, "Unfair practices such as market manipulation and insider trading are like poisonous mushrooms growing from the tears of honest investors."

He introduced that the government has been operating a 'Task Force for Intensive Response' since October last year to eradicate illegal and unhealthy behaviors in the securities market, emphasizing that they will improve systems such as introducing fines for unfair trading and preventing illegal activities by pseudo-investment advisory services.

He added, "The promise to implement institutional improvements to alleviate investors' anxiety and concerns ahead of the resumption of short selling next month will be carried out without delay," and said, "We opened a system for pre-education and simulated investment that individuals must complete to engage in short selling on April 20th, allowing them to obtain qualifications before the resumption."

Regarding the recent breakthrough of the KOSDAQ index surpassing 1000 points, he said it marks overcoming the aftereffects of the past dot-com bubble and standing at the starting line of a new beginning, emphasizing, "Above all, securing investors' trust in fairness is the top priority."

He stated, "Recently, individual investors are seeking investment opportunities overseas beyond the domestic stock market, and there are reports that well-known companies are considering direct overseas listings," urging, "The Korea Exchange should consider all possible measures, including improving listing and market operation systems and strengthening cooperation with overseas markets, so that well-known companies can be listed on our stock market and provide investors with more diverse investment opportunities."

On the same day, Chairman Eun met with Sohn Byung-doo, Chairman of the Korea Exchange, the head of the KOSDAQ Market Division, the chairman of the Market Surveillance Committee, Na Jae-chul, Chairman of the Korea Financial Investment Association, and representatives of securities firms to observe a simulated demonstration of the illegal short selling monitoring system, including real-time short selling quote monitoring, and reviewed the process of detecting illegal short selling.