Photo : YONHAP News
President Yoon Suk Yeol has called for efforts to revitalize the capital market at a Cabinet meeting held to discuss financial matters.
At the meeting Tuesday, Yoon reiterated his opposition to the financial investment income tax, which is set to take effect at the start of 2025, and asked ministers to prepare for the lifting in March of a temporary ban on short selling but pursue a crackdown on illegal short selling.
Yoon said changes to the Financial Investment Services and Capital Markets Act, which covers short selling, are intended to address the so-called “Korea discount” in the stock market.
They will involve comprehensive inspections to prevent illegal short selling, he said, and significantly stronger penalties.
Under the new regulations, people who engage in illegal short selling can be barred from trading for up to five years or from serving as executives at listed companies.
Accounts suspected of being used for unfair trading will be subject to a default six-month freeze.