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The Securities and Futures Commission of the Financial Services Commission (FSC) has finalized a memorandum to impose a maximum fine of 7 548.8 million won on Goldman Sachs International, a foreign investment agency in the United Kingdom.
The Financial Supervision Service (FSS) had previously proposed the imposition of a fine of one billion won, but the Supreme Court increased the penalties in an awareness effort.
Forty-five (63%) of the 71 penalties imposed by short selling not repaid in the past five years have only received "attention" from the authorities.
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Goldman Sachs breached restrictions on short selling of the 156 listed shares (40.1 billion won) that were not borrowed from May 30th to May 31st. Kwon said the investigation had not revealed any allegations related to unfair transactions such as market manipulation or unlisted information.
Most countries, including Korea, actually allow "overdraft", which sells shares, and "unredeemable short selling", which orders without borrowing shares, is illegal.
According to the Supervisory Board, the borrower of Goldman Sachs was originally required to enter the amount of the desired stock in the "online trading" menu of the commercial program and apply for a loan from the lending institution (deposit institution). I made a mistake when entering the story.
The latter allows a broker to negotiate a stock loan with an institutional investor by telephone or courier and manually enter the result.
As a result, employees who did not actually apply for a loan but did not know it was a short sale, he said.
Goldman Sachs' online loan program is designed to allow borrowed stock to be put in stock with the lending institution's approval, but an offline method such as Phone calls can be entered as borrowers are borrowed at random without loan approval.
The internal control system of Goldman Sachs is inadequate.
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