[2023 National Audit] Financial Services Commission Chairman "Seeking Expert Assistance to Improve Short Selling System"

The financial authorities have expressed their intention to pursue institutional improvements related to short selling.

On the 27th, Kim Ju-hyun, Chairman of the Financial Services Commission, stated at the comprehensive audit of the Political Affairs Committee held at the National Assembly, "Although some institutional improvements have been made so far, we will start from scratch and, with the help of the country's top experts, improve all systems through transparent and reasonable procedures."

On the same day, Yoon Chang-hyun, a member of the People Power Party, argued, "Short selling should only resume after minimizing discrimination against individuals compared to institutions and foreigners involved in illegal short selling, and after implementing measures that do not raise doubts about fairness or reliability."

In response, Chairman Kim said, "I regret that it appears as if I am siding with foreign investment banks (IBs). Although efforts have been made to improve the system, as recently announced by the Financial Supervisory Service, seeing that IBs continue to cause problems, I have come to understand that individual investors have sufficient reasons not to trust the stock market."

Meanwhile, Lee Bok-hyun, Governor of the Financial Supervisory Service, regarding the embezzlement and fraud case involving private bankers (PBs) and the criticism that Mirae Asset Securities did not properly report the financial accident, explained, "Immediately after the criticism during the last audit, I returned and ordered an immediate inspection. We will strictly investigate whether there was false reporting, omission, intentional or gross negligence, and determine if it was a failure of internal control or illegal concealment, and respond firmly to hold those responsible accountable to the fullest extent."