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S.Korea fines Goldman Sachs’ unit $6.7 mln for naked short selling

By Jeff Davies

South Korea’s financial regulator has imposed a fine of 7.5 billion won (approximately $6.7 million) for violating short-selling rules, which are illegal in the Asian country.

The fine marks the highest amount the South Korean authority has ever imposed for the banned type of short selling, which is conducted without securing underlying assets.

The financial regulator said that Goldman Sachs executed short selling without underlying assets, known in South Korea as “naked” short selling, worth 40 billion won (approximately $35.4 million) in May. Goldman did not respond to requests to comment on the issue.

The fine comes amid adopting more strict rules and procedures on short selling in South Korea, due to the poor market performance. Additionally, Goldman Sachs is under investigation currently for its alleged involvement in 1MDB corruption scandal in Malaysia.

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