Names of Rule Violators to Be Made Public
The Financial Services Commission announced on Dec. 1 that the names of corporate bodies violating the duty of disclosure, causing market disturbance, and violating short selling rules would be made public starting from February next year.
At present, the names of securities companies and organizations fined and punished for unfair practices such as illegal short selling and stock price manipulation are not made public. This is to prevent third parties from using certain financial transaction information with malicious intentions. The commission decided to change the policy for more effective market control.
This change in policy is expected to reduce discrimination between domestic and foreign securities companies. At present, most domestic financial investment businesses are required to submit business reports and their unfair practice-related disciplinary actions must be included in the reports. In other words, which committed what is known even without the name being made public by the commission. Foreign securities companies do not have to submit their business reports.
According to People Power Party lawmaker Yoo Eui-dong, a total of 127 individuals and corporate bodies have been fined or disciplined for illegal short selling since 2010 and those include 119 foreign. The commission said that non-disclosure would be maintained as to market manipulation, illegal dealing and use of undisclosed information. “These are subject to criminal punishment and related information disclosure may affect investigations and trials,” it said.