The Financial Supervisory Service (FSS) of South Korea announced on Tuesday that it would be conducting a thorough investigation into all global investment banks (IBs) located in the country in order to examine their stock short selling activities. To this end, the FSS has created a special task force to carry out the inspection.
The FSS noted that it will take strict action against any instances of illegal short selling uncovered by the investigation, in an effort to restore investor confidence in the market. The task force is comprised of 20 FSS officers, many of whom are experts in investigations and are proficient in English.
The move comes after two Hong Kong-based IBs were found to have been involved in illegal short selling for an extended period of time. The FSS has also stated that it will provide the necessary resources and personnel to ensure a swift and effective investigation of foreign investors.