South Korea is considering several options to penalize illegal short sellers, including banning them from stock trading for up to 10 years, the country’s financial regulators said.
Those who engage in illegal short selling — such as placing “naked short” orders — may also be restricted from serving as executives at listed companies and financial firms in Korea, the Financial Supervisory Service said Thursday. The government may also extend a ban on all short selling beyond June next year if reform measures aren’t sufficient, the Financial Services Commission said.
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