(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Jisun] Lee Bok-hyun, the head of the Financial Supervisory Service, expressed the intention to partially resume the suspended short selling in June.

During an investment explanation session (IR) held at the Conrad Downtown Hotel in New York on the 16th (local time), Lee Bok-hyun met with reporters and stated, "The plan is to partially resume short selling in June."

Lee Bok-hyun mentioned that establishing a centralized management system for the short selling balance of each institutional investor at the exchange requires time and has legal issues, stating, "We are considering options that can be pursued without legal amendments."

He further added, "Even if there are technical and institutional shortcomings related to the resumption in June, it is necessary to communicate to the market the timeline for resumption after listening to stakeholders' opinions."

Lee Bok-hyun expressed the opinion that it is necessary to delist underperforming companies, but he disagreed with the government's "Value-Up" program for companies, which aims to enhance corporate value. He stated, "It is not an exaggeration to say that there are hardly any companies leaving the market compared to the number of companies entering," and added, "Although there is a need to change this environment, it is not appropriate to use the price-to-book ratio (PBR) as a criterion for delisting."

Regarding the regulation of Equity Linked Securities (ELS) sales, he mentioned that various opinions are being considered, including prohibiting banks from selling risky assets, and discussions are ongoing through a task force (TF) led by the Financial Services Commission.

 

 

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