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.
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.
Join the Conversation