[비즈니스포스트] Lee Bok-hyun, head of the Financial Supervisory Service, explained that the ban on short selling was not a measure taken with the general election next year in mind.
Regarding the banking sector, he pointed out that profits were easily achieved without any significant innovation.
Lee Bok-hyun draws a line in banning short selling as a ‘card for general elections’, and banks’ interest income is criticized again” height=”150″ src=” width=”300″ /> ▲ Financial Supervisory Service Chairman Lee Bok-hyun (second from the right) at the Korea Certified Public Accountant in Seoul on the 6th. He is speaking at a meeting of CEOs of accounting firms held in society. <연합뉴스>
Director Lee met with reporters after a meeting with CEOs of accounting firms held at the Korean Institute of Certified Public Accountants in Seoul on the 6th and said, “The ban on short selling was an inevitable choice at this stage considering the market situation comprehensively,” and “You keep talking about the political world. “It is a market action that financial authorities can take,” he said.
The financial authorities announced the day before that they would completely ban short selling. There was also suspicion in the market that this was a measure aimed at targeting the votes of individual investors ahead of next year’s general election.
This is because it has been pointed out that short selling is a ’tilted playing field’ that is disadvantageous to individual investors due to the collateral ratio and repayment period.
Director Lee explained that the total ban on short selling was done to introduce a more advanced system and was not a political measure.
He said, “It is an inevitable choice in order to introduce an advanced short selling system,” and added, “The current situation is not an ‘alley with a lot of broken glass,’ but a place where illegality has become so common that all the glass is broken.”
Regarding the point that inclusion in the Morgan Stanley Capital International (MSCI) developed country index may become difficult due to the complete ban on short selling, he emphasized that trust comes first.
Bloomberg News also reported on this day, citing expert opinions, that the ban on short selling could jeopardize Korea’s inclusion in the MSCI developed country index.
Director Lee explained, “Incorporation into MSCI itself is not the ultimate goal to be achieved,” and “I know that short-selling operations are necessary for incorporation, but those who must gain trust are not only foreigners and institutions, but also individual investors.”
In addition, he added a word to the criticism of the banking sector’s interest income raised by President Yoon Seok-yeol.
Director Lee said, “When comparing operating profits in the third quarter, the profits of the entire banking sector are greater than Samsung Electronics, LG Electronics, and Hyundai Motors combined,” and added, “Companies that innovate at this level, such as in the semiconductor and automobile fields, are at this level, but is the banking industry really capable of innovation? “We need to determine whether trillion won worth of interest has been earned,” he said.
He added, “There needs to be a consensus on why the public criticizes banks and raises issues.” Reporter Kim Hwan
2023-11-06 07:22:58
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