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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] A court has ruled that the Financial Services Commission (FSC) must cancel the penalty imposed for illegal short selling.
On August 28, it was reported that the Seoul Administrative Court recently ruled in favor of Kepler Cheuvreux, a foreign financial firm, in a lawsuit against the Financial Services Commission's Securities and Futures Commission. The court determined that Kepler Cheuvreux did not intend to engage in illegal short selling and found errors in the calculation of the short selling order amount.
The Securities and Futures Commission had imposed a penalty of 1.063 billion KRW on Kepler Cheuvreux in September of the previous year, alleging that the firm had placed a sell order for 41,919 shares of SK Hynix that it did not own.
Since the amendment of the Capital Markets Act in April 2021, penalties for illegal short selling have increased, allowing for fines up to 100% of the short selling order amount, compared to the previous maximum fine of 10 million KRW.
The financial authorities are currently reviewing the court's decision to determine whether to appeal.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
