South Korea fines three global hedge funds over alleged unfair transactions

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SEOUL, Dec 20 (Reuters) – South Korean authorities said on Wednesday they have fined three global hedge funds a total of 2 billion won ($1.54 million) over alleged unfair stock transactions.

The hedge funds are accused of violating the country’s capital markets law and conducting alleged naked short selling, the Financial Services Commission said in a statement.

The authorities did not disclose which hedge funds were involved in the transactions.

The Financial Services Commission said it would send the case to prosecutors for investigation.

Wednesday’s fines follow the government’s March decision to fine two global firms for naked short selling in the local stock market, for the first time under a new set of regulations.

South Korea on Nov. 5 said it is banning stock short-selling until June 2024 to improve rules and systems, inviting criticism that it will make the market less transparent and reduce liquidity at a time when the government is working to convince MSCI to promote South Korea from an emerging to a developed market in its next annual market classification review.

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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