KOREAN REPUBLIC: FSS Launch Inspection of Goldman Sachs’ Korean branch for Naked Short Selling

Wednesday June 6 2018

South Korea’s financial regulator, the Financial Supervisory Service has confirmed that it has launched an inspection into the Seoul branch of Goldman Sachs Group with regard to breaching naked short selling rules.

According to the FSS, the Seoul branch of Goldman Sachs received a short selling order from Goldman Sachs International, an overseas subsidiary, on 30 May. The Seoul branch carried out the order, but failed to settle the transactions for some 1.39 million shares of 20 companies valued at about 6 billion won on 01 June.

The FSS suspects that Goldman Sachs International placed the short-selling orders on the Seoul branch without having first borrowed them.

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