Regarding the ruling party and the government’s announcement on the 5th to implement a 'complete ban on short selling,' Park Yong-jin, a member of the Democratic Party of Korea, expressed concern that "only the People Power Party will benefit."
On the 6th, on YTN's 'News King Park Ji-hoon,' Park said, "We need to come up with fundamental measures instead of just putting a band-aid on the problem."
Park Yong-jin, candidate for the Democratic Party of Korea party leader, holds a press conference at the National Assembly Members' Office Building on the 11th. Photo by Yoon Dong-joo doso7@
He criticized the ban on short selling as an 'election measure,' saying, "This seems less like a plan pushed by financial authorities and more like the ruling party, with the general election approaching, trying to do something that might help with votes, like the incorporation of Gimpo and the complete ban on short selling, pushing policies in a patchwork manner."
Park said, "The way they are pushing this is like, with the election ahead, hurriedly trying to consume anything that might be good for them. This approach will cause stomach problems. It would be fine if only they got sick, but the ones who suffer are the national economy and the lives of the people."
He pointed out the need to establish a real-time monitoring system before implementing a complete ban on short selling. Park emphasized, "Currently, short selling transactions are done manually, and this should be banned first. Securities firms should take responsibility to build computerized systems and create real-time monitoring systems so that illegal short selling and naked short selling can be detected almost immediately, preventing any wrongful attempts."
Park added, "Those who engage in illegal short selling are not individual investors but mainly foreign institutional investors. Securities firms are making astronomical profits through short selling and other activities, but when asked to build computerized systems, they almost make a pitiful face."
He also pointed out that the inclusion of Morgan Stanley Capital International (MSCI) advanced index, which the financial authorities have been promoting, might be hindered. He criticized, "With the ban on short selling this time, the inclusion in the MSCI advanced country index will practically become impossible. There is no plan at all on how this relates to the long-term rise in stock prices; it’s just done because the ruling party demands it."
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