Yoon says short-selling ban will remain in place until side effects settle

Jan 05, 2024, 08:21 am

		0
President Yoon Suk-yeol speaks at a government policy briefing led by the financial ministry at a human resource development center run by the Korea Federation of Small and Medium Business in Yongin, south of Seoul, on Jan. 4, 2024. /Source: Yonhap News

By AsiaToday reporter Hong Sun-mi

President Yoon Suk-yeol said Thursday the ban on stock short selling will remain in place until side effects settle. “There are people who say short selling will be banned temporarily until June and the ban will be lifted after the elections, but that’s definitely not the case. It will only be lifted when an electronic system that can completely remove the side effects is firmly established. If not, we will keep the ban in place,” he said.

The president stressed his willingness to resolve the side effects of short selling to create an investment-friendly environment for retail investors. It comes after his official announcement of withdrawing the nation’s plan to introduce a net investment income tax scheme during his visit to an opening ceremony of the nation’s first stock trading day of the year at the Korean Stock Exchange in Seoul on Tuesday.

Yoon made the remark while receiving the first government policy report of the year, which brought together the finance ministry, other relevant ministries, experts and members of the public.

The event was attended by some 130 people of different occupations and age groups, including small business owners, small and medium-sized businesses and retail investors.

“Prices will be more stabilized and employment rates will improve this year,” Yoon said. “What’s the most important is that we need to take care of people’s livelihoods so that public can feel it. We need to be a government that immediately solves any problems if the people want.”

When one of the attendees called for more support on R&D, the president said, “I will boldly pursue system improvement in the direction of improving the national economy by investing in R&D. I will significantly increase budget on R&D during my term.”

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok announced plans to reduce duties on 21 kinds of fruit, and offer a 20% tax deduction for credit card use in the first half of the year, in order to stabilize prices.

He also introduced a set of measures on supporting small business owners, such as reduction in power rates and interest refund program.

#Yoon Suk-yeol #short selling ban