South Korea’s Chosun Ilbo daily reported on Thursday that financial authorities had notified Credit Suisse AG that it could face 50 billion won in fines over allegations it breached short-selling rules.
The notice was sent to the South Korean and Singaporean units of the bank, the report said, citing industry sources.
The FSS and UBS, which took over Credit Suisse in 2023, declined to comment on the report.
In South Korea, the Capital Markets Act bans “naked” short selling of stocks, in which an investor short sells shares without first borrowing them or determining they can be borrowed.
The FSS said it is cooperating with authorities in Hong Kong on its investigation and plans to visit the city this month for a meeting to explain South Korea’s short-selling regulations.
Last month, the watchdog prepared a new monitoring mechanism to better detect short-selling breaches in the stock market.
South Korea has said the short-selling ban, imposed through the first half of this year, will stay in place until adequate measures are prepared to prevent illegal trades.
