From March, short selling regulations and penalties to tighten; calls for abolishing financial investment income tax

[Anchor]

The Capital Markets Act, which strengthens sanctions and penalties against illegal short selling, has been promulgated and will take effect in March next year.

President Yoon Suk-yeol urged financial authorities to prepare thoroughly and emphasized once again that the financial investment income tax should be abolished to revitalize the capital market.

Lee Hyun-jun reports.

[Report]

The government completely banned short selling last November.

This decision was made based on the judgment that illegal naked short selling was shaking the trust in the capital market.

In fact, the financial authorities announced last May that they had detected over 200 billion won in illegal short selling from nine global investment banks.

The amendment to the Capital Markets Act to prevent such behavior passed the National Assembly on the 26th of last month and was promulgated today (10.15) at the Cabinet meeting.

The key point is the mandatory establishment of a short selling electronic system.

Violating this will result in fines even if there is no illegal short selling.

Sanctions and penalties will also be significantly strengthened to prevent repeated unfair trading and illegal short selling.

The government plans to take follow-up measures, including preparing presidential decrees, ahead of the implementation at the end of March next year.

[President Yoon Suk-yeol: "The tilted playing field between individuals and institutions will be resolved, and penalties and sanctions against illegal short selling and unfair trading will be significantly strengthened."]

President Yoon Suk-yeol also repeatedly urged the National Assembly to abolish the financial investment income tax.

He expressed confidence in financial policy, stating that the recent inclusion in the World Government Bond Index is "an international recognition of the current government's direction."

[President Yoon Suk-yeol: "We will resolve the Korea discount, enhance the status of our capital market, and attract more investment."]

Meanwhile, President Yoon promised to quickly designate a tertiary general hospital in Jeju Island to improve living conditions during the first public livelihood discussion held in Jeju.

KBS News, Lee Hyun-jun.