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Short selling is a very sensitive word for stock investing individuals, so-called ants. The situation is bad, but the big hands, foreigners shake the market with heavy capital and damage it, but the government can regulate it.

This is reporter Park Min-ha.

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Short selling is an investment method in which stocks are borrowed and sold in anticipation of falling stocks, and then, when the actual price falls, they are bought at cheap prices and paid off.

When the market is unstable, an increase in short selling can accelerate the price drop.

On the 5th, when the stock price plummeted, short selling transactions amounted to 631 billion won, up 46.7% from the July average.

As institutions and foreigners use it a lot, the damage may be concentrated on private investors.

Recently, bio and pharmaceutical companies, which have been targeted for short selling due to the decline in trust surrounding new drug development, are pouring out their originality.

Lim Jong-yun, chairman of the Korea Bio Association, urged the ban on short selling, saying, “The bio industry has long been a playground for malicious and fraudulent short selling forces.”

The government has not ruled out a shorting regulatory card if the market becomes more unstable.

[Hongnam-gi / Deputy Prime Minister: We will respond promptly and boldly according to the market situation through available measures such as stabilization of stock market supply, relaxation of stock repurchase regulations, and tightening of short selling regulations.]

The government temporarily banned short selling during the 2008 global financial crisis and the 2011 US credit downgrade.

However, the short selling also has the net function of providing liquidity to the stock market and preventing the stock price bubble.

As the short-term short-term stock market has a weak stabilization and even a crisis, the actual ban is likely to be carefully determined according to market conditions.

(Video Editing: Park Jeong-sam, VJ: Min-gu Jung)