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The national pension decided to stop lending shares, which have been criticized for being a staple of short selling.
Kim Sung-ju, chairman of the National Pensions Service, said during a public inspection of the Health and Welfare Committee of the National Assembly held at the headquarters of the National Pension Service in Jeonju on November 23: "I stopped lending new stocks in Korea from the 22nd."
Kim said: "We are planning to resolve the existing leases by the end of the year taking into account the contractual relationship with the borrowing institution. We will badyze the effect of the loan transaction on short selling in the future and decide if it is appropriate to resume it. "
The national pension has an annual average of 600 billion won in equity loans. The domestic loan market accounted for 0.68% of the total, or 44.4 billion won in equity loans last year. Income from domestic equity loans is about 13.8 billion won.
Under current law, securities lending is a legitimate trading technique. Recently, however, the People's Petition Bill on Cheong Wa Dae claims that the national pension loan is a short sale and that the national pension also suffers from the fall in the price of the national pension. action.
Kim Sang-hee, a member of the Democratic Party and Nam In-Soo, and legislators of the Democratic Party have pointed out various issues that arise when securities lending leads to short selling.
Kim said: "The stock credit is used by the short selling forces, not only to bring down the index, but also to bring down the investment positions of the pension system." "Have you accurately calculated the damage to the shares of the national pension?"
"We need to review the fundamentals of securities lending to minimize the negative side effects of short selling," said the representative.
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