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Regulator imposes 27.1 bln won in fines on 2 foreign banks for illegal stock short selling

The financial regulator imposed record fines Wednesday on two global investment banks (IBs) in South Korea for illegal stock short selling. The Financial Services Commission (FSC) said it has imposed a combined 27.17 billion won (US$19.6 million) in fines on UBS AG and Credit Suisse Singapore Ltd. UBS AG, while previously operating as Credit Suisse AG, placed naked short selling orders for over 160,000 shares of some 20 listed firms in the country between April 2021 and June 2022, while Credit Suisse Singapore placed naked short selling orders worth over 60 billion won between November 2021 and June 2022, according to the FSC. The imposed fines "marked the largest amount imposed since the country introduced a fine system for illegal stock short selling in April 2021," it said in a press release. The financial regulator has been inspecting 14 major global IBs here since late 2023 after detecting illegal stock short selling activities at two investment banks. The FSC earlier said it has since detected all eged illegal short selling activities at nine IBs. Stock short selling has been temporarily banned since November 2023. The ban was earlier scheduled to be lifted at the end of June but has been extended until March 30, 2025. Source: Yonhap News Agency