Seoul, March 4 : South Korea’s financial watchdog has imposed over 60 billion won ($41 million) in fines on global and local investors over illegal short selling over the past two years, data showed on Tuesday, with the country set to lift its temporary ban on the stock trading practice at the end of this month.
According to the data compiled by the Financial Supervisory Service (FSS) and submitted to Rep. Lee Kang-il of the main opposition Democratic Party, the watchdog imposed a combined 63.5 billion won in fines in 58 illegal short selling cases from March 2023 to last month.
The figure may further rise as details of measures currently under review were not disclosed, reports Yonhap news agency.
The FSS has been investigating 14 global investors and is planning to complete its probe before March 31, when the short selling is scheduled to resume.
The country imposed a temporary ban on the practice in November 2023 after a series of naked short selling violations involving several global investment banks were discovered.
Kim Byoung-hwan, the chief of the Financial Services Commission (FSC), said earlier the regulator is planning to allow short selling on all publicly traded companies here.
Before the short selling ban, only 350 listed firms, namely the constituents of the KOSPI 200 index and the KOSDAQ 150 index, had been subject to short selling.
Meanwhile, South Korean stocks turned lower late on Tuesday after starting marginally higher, amid growing concerns over the imminent imposition of U.S. tariffs on Canadian and Mexican goods.
The benchmark Korea Composite Stock Price Index (KOSPI) had lost 3.2 points, or 0.13 percent, to 2,529.58 as of 11:20 a.m.
Overnight, major US shares slid after President Donald Trump said 25 per cent tariffs on goods from Mexico and Canada will take effect as planned on Tuesday (US time), sparking fears of a global trade war.
The S&P 500 dropped 1.76 per cent, and the tech-heavy Nasdaq tumbled 2.64 percent, while the Dow Jones Industrial Average declined 1.48 per cent. (IANS)