Input 2021.02.15 13:42
It was found that securities companies earned 40~70 billion won in commission income every year through short selling. In the seven years from 2014 to last year, commission income exceeded 350 billion won. Even last year, when short selling was banned from March, it earned nearly 10 billion won in commission income.
Among the securities companies, credit Swiss (CS) securities, which are of foreign origin, received the most income from short selling fees. Among domestic securities companies Samsung Securities (016360)Was the largest in short selling commission income.
Short selling is an investment in which stocks are borrowed and sold, and then the stock price is lowered, and the stock price rises above the corporate value. However, some argue that foreigners and institutions lead short selling and deliberately lower corporate stock prices. Accordingly, the Financial Services Commission decided on a market measure banning short selling for six months after the domestic stock market plunged due to the spread of a novel coronavirus infection (Corona 19) in March last year, and has extended the ban on short selling until May 2nd.
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By year ▲4,351 billion won in 2014 ▲66.65 billion won in 2015 ▲60.44 billion won in 2016 ▲67.752 million won in 2017 ▲71.52 billion won in 2018 ▲44.641 billion won in 2019. In addition, last year, when short selling was completely banned from March 16, it earned a commission income of 9.6 billion won.
By securities company, the place where the most money was earned from short selling was the Seoul Branch of Credit Switzerland (CS), which earned 86.72 billion won. Merrill Lynch Securities Seoul Branch (59 billion KRW), Morgan Stanley Seoul Branch (56.81 billion KRW), UBS Securities Seoul Branch (48.69 billion KRW).
Among domestic securities firms, Samsung Securities had the largest short selling commission income at 16.8 billion won. Mirae Asset Daewoo (9.496 billion won), Shinhan Investment & Securities (7.55 billion won), NH Investment & Securities ## (4.74 billion won), Korea Investment & Securities (4.45 billion won), and KB Securities (1.553 billion won) It generated billions of billions of short selling commission income.
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Eui-jung Jeong, CEO of the Korea Stock Investors Association, said, “Securities companies can make tremendous profits by sitting still and with short selling commission profits, so the more the short selling market becomes active, the more profitable they are,” he said. “The government will go ahead and make short selling to individuals easily. Hani securities companies are welcome, but there is a high possibility that individuals will lose their investment through short selling.
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