South Korea says it will impose penalties on two global banks

Authority has been investigating practice of naked short-selling

20240114 South Korea Market Trader

South Korea has been widening a probe into global investment banks to weed out illegal short-sellers from the local stock market. © AP

SEOUL (Reuters) -- South Korea's financial regulator on Sunday said it plans to impose penalties on two unnamed global investment banks it is investigating.

The Financial Services Commission said it found two global investment banks were engaged in the practice of naked short-selling transactions, which involves selling shares without borrowing them first.

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