Korean lawmaker highlights foreign bank short selling fees

Business Korea: Foreign Securities Companies Taking Huge Short Selling Fees

Democratic Party of Korea lawmaker Park Yong-jin said on Feb. 15 that 56 domestic and foreign securities companies took a fee of 354.1 billion won as short selling brokers from 2014 to 2020.

The amount includes more than 250 billion won taken by Merrill Lynch, Morgan Stanley, UBS and Credit Suisse. The short selling fee income of Credit Suisse amounted to 86.72 billion won and those of Merrill Lynch, Morgan Stanley and UBS added up to over 59 billion won, 56.8 billion won and 48.76 billion won, respectively.

Those of Samsung Securities, Mirae Asset Daewoo, Shinhan Investment, NH Investment & Securities, Korea Investment & Securities and KB Securities were approximately 16.8 billion won, 9.49 billion won, 7.55 billion won, 4.74 billion won, 4.45 billion won and 1.55 billion won, respectively.

The Korea Securities Depository is planning to launch a new stock lending and borrowing system on March 8 in an effort to prevent naked short selling. It said on Feb. 15 that the free system will store original lending and borrowing contracts with safety.

The full article is available at http://www.businesskorea.co.kr/news/articleView.html?idxno=60470

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