Democratic Party "Fully Agree with Extension of Short Selling Ban... Standing Committee Should Convene to Discuss Improvement Measures"

Democratic Party Political Affairs Committee Member "Preparing Legislation Based on 21st Institutional Improvement Plan"

The Democratic Party of Korea stated on the 14th that it 'agrees' with the government's decision to extend the ban on short selling until March next year. However, it urged the People Power Party to return promptly, emphasizing the need to convene the Political Affairs Committee quickly for institutional improvements.

Democratic Party members of the Political Affairs Committee said in a statement that "the financial authorities have decided to extend the ban on short selling until March next year. We fully agree with the rationale of eradicating illegal short selling," adding, "Eradicating illegal short selling, which is one of the main culprits undermining the credibility of investors in the Korean market, is the first step toward advancing the capital market."

As the U.S. stock market reached an all-time high, on the 14th, the domestic stock market saw both the KOSPI and KOSDAQ start with slight gains but then fluctuate up and down, while the won-dollar exchange rate rose slightly. Employees are working in the dealing room at the Seoul Hana Bank headquarters. Photo by Heo Younghan younghan@

They stated, "Effective measures, not just verbal institutional improvements, are needed," and promised, "The Democratic Party will actively work to improve the uneven playing field for individual investors and to computerize the short selling market." They continued, "During the 21st National Assembly, many bills containing institutional improvement measures were proposed by Democratic Party lawmakers. Based on those bills, we will promptly push for the necessary legislation in the 22nd National Assembly as well."

Regarding institutional improvements, they urged the convening of standing committees and other meetings. The Democratic Party members of the Political Affairs Committee said, "Due to the ruling party's refusal, the Political Affairs Committee has not even been able to convene. The sincerity of stabilizing and improving the financial market, which is not mere election populism, must prioritize actions over words," and urged, "We hope the ruling party returns to the floor as soon as possible and actively participates in discussions on the Capital Market Act amendments."