Prosecutors Conduct Search and Seizure on UBS, Macquarie, Citibank, and Others Related to 'Illegal Short Selling'

On the 20th, the prosecution conducted a search and seizure operation targeting three foreign financial institutions, including securities firms and banks, in connection with an illegal short selling case.

The Financial Investigation Divisions 1 and 2 of the Seoul Southern District Prosecutors' Office announced that they have been executing search warrants at three financial companies?UBS, Macquarie Securities, and Citibank?since the morning of the same day.

The prosecution reportedly launched the search and seizure to secure materials related to foreign financial investment firms under investigation for violating the Capital Markets Act (fraudulent unfair trading, etc.) by obtaining illicit gains through naked short selling.

[Image source=Yonhap News]

Previously, in May 2021, UBS was found to have placed sell orders for 27,374 SK common shares (worth approximately 7.3 billion KRW at the time) that it did not own, resulting in a fine of about 2.18 billion KRW imposed by the Financial Services Commission's Securities and Futures Commission last year. Macquarie Bank was also fined 54 million KRW for delayed reporting of net short selling positions and violations of disclosure obligations.

Meanwhile, on the 15th, the Seoul Southern District Prosecutors' Office also conducted search and seizure operations at three financial firms?BNP Paribas Securities, HSBC Securities, and HSBC Bank?in connection with illegal short selling.