South Korea Levies $20 Million Fines on BNP and HSBC for Illicit Trading | World Business News

South Korea imposes fines on two global investment banks and a local unit, totaling $20.3 million (26.5 billion W), for engaging in illicit naked short selling.

Naked short selling involves speculatively selling shares without obtaining a loan or ensuring shares can be borrowed, with the goal of profiting from a predicted drop in asset prices.

The fines represent South Korea's largest penalty for illegal practices since the 2008 financial crisis and highlight the country's efforts to combat unlawful short selling.

Despite being banned in the EU and the United States, naked short selling activities were carried out by the penalized entities in South Korea, according to the Securities and Futures Commission.

As part of ongoing measures, South Korea had previously imposed a complete ban on short selling until June 2024, emphasizing its commitment to removing unlawful short sellers from the local stock market.

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