Democratic Party lawmaker Park Yong-jin, who announced that he would declare a challenge to the presidency after the victory of the 4/7 by-election, strongly criticized the current short selling system loophole.



Rep. Park held a press conference on the morning of today (24th) at the National Assembly's communication hall, ``Pointing out the issue of improving the short selling system of the Financial Services Commission,'' and insisted that before resuming short selling, the unlawful behavior of market makers should be punished.



It is that illegal activities must be eradicated by mandatory computerization of short selling of securities companies and strengthening penalties.



Rep. Park diagnosed the current situation, saying, "If we cannot correct injustice in the market, our people and ant investors are bound to shed blood," and said, "To ensure that no people are disadvantaged due to institutional loopholes and slanted playgrounds in the stock market. It is also the responsibility of the financial authorities, but it is the duty of the National Assembly member Park Yong-jin.”



Rep. Park also called for an alternative, saying, "It is not to criticize the Financial Services Commission, but to appeal to the people who are gathered in the stock market to keep their precious dreams and small wishes together."



First of all, he said, "Of the 22 market makers, 3 market makers were caught selling illegal short sales over 20, 8 and 1 days, respectively. He said that it was not committed," he said. "If it is broken down by behavior, illegal activities and the resulting damage can be enormous."



“Even so, the Financial Services Commission is reluctant to disclose specific details such as the amount of short selling and stocks for security reasons.” "If you don't know what was done, you won't know which investor was hurt and how."



As an example of this, Congressman Park mentioned Goldman Sachs, which was awarded the largest penalty of 7.5 billion won in history by the Securities and Futures Commission for short selling without borrowing in 2018.



At that time, Goldman Sachs violated the restrictions on short selling by placing a sell order for 156 un-borrowed listed stocks and KRW 40.1 billion on May 30-31, 2018.



At the same time, Congressman Park suggested that the Financial Supervisory Service can re-investigate market makers' illegal activities, and that short selling and illegal activities should be included in the Financial Supervisory Service's comprehensive inspection on exchanges.



In particular, he pointed out that it is necessary to supplement the loopholes of the current system by introducing a'prevention of non-borrowing short selling' system.



The monitoring that the Financial Services Commission has unveiled so far is for ex post detection, which means that securities companies must self-detect beforehand.



Rep. Park said, "The legitimacy of short selling lies in'whether or not you borrowed the stock or sold it or not', and it cannot be considered as'no problem because you paid it back later'.' "The intention is to have a brokerage company establish a proactive monitoring system in "



(Photo = Yonhap News)