South Korea's Financial Watchdog Discusses Corporate Reform in New York

By Thea Felicity

May 19, 2024 03:17 PM EDT

Samsung Electronics Chairman Lee Jae-yong Attends Court In Merger Case
SEOUL, SOUTH KOREA - FEBRUARY 05: A Samsung flag flies outside the company office on February 05, 2024 in Seoul, South Korea. The Seoul district court will set to final decision on Samsung Electronics Co. Chairman Lee Jae-yong in a case involving a controversial merger of two Samsung affiliates where.
(Photo : Photo by Chung Sung-Jun/Getty Images)

South Korea's top financial regulator recently addressed over 200 investors and analysts in New York, reaffirming the government's commitment to improving corporate value and shareholder returns, per Bloomberg.

The event in New York, attended by key figures from South Korean financial institutions, also provided insights into government plans, including potential tax incentives for participating companies and encouragement for banks to increase shareholder returns. 

During the meeting, Governor Lee Bokhyun of the Financial Supervisory Service underlined the importance of South Korea's "Corporate Value-up" plan, especially in light of recent political developments. 

With the ruling party's defeat in April's parliamentary elections potentially impacting market momentum, Lee sought to reassure investors about the nation's reform initiatives. 

READ NEXT: Crypto Heists: North Korea Launders $147 Million in Stolen Cryptocurrency in March

Ban on Short-Selling

Of particular concern was the ban on short-selling, which has been in place since November to combat illicit trading practices.

According to Wall Street, a "ban on short-selling" refers to a regulatory measure implemented by financial authorities to restrict or prohibit the practice of short-selling securities in a particular market. 

During periods of market instability or economic downturns, regulators may impose temporary bans on short-selling to stabilize prices and restore investor confidence. These bans are usually intended to be temporary measures until market conditions improve.

While favored by domestic investors, the ban has sparked controversy globally, prompting Lee to advocate for its resumption to address the stock market's undervaluation compared to peers. 

READ MORE: South Korea to Provide Chip Investment and Research Support Package Valued Over $7 Billion

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics