FILE PHOTO: Currency dealers walk past an electronic board showing the Korea Composite Stock Price Index at a dealing room of a bank in Seoul, South Korea, March 13, 2020. REUTERS/Kim Hong-Ji/File PhotoSEOUL : South Korea's stock market regulator said on Tuesday it is setting up a special investigation team next week to probe short-selling trades by foreign investment banks for any illegal activity, including so-called naked short-selling.
Currently, short-selling is allowed only on 200 large-cap stocks on the benchmark KOSPI index and 150 stocks on the junior KOSDAQ. The watchdog said it would also collaborate with authorities in Hong Kong and Singapore to carry out international investigations in the first half of 2024.
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