(Bloomberg) -- South Korea has fined Barclays Plc and Citigroup Inc. for naked short selling, Chosun Ilbo newspaper reported, as the nation ramps up its fight against such illegal trading practices.
Barclays and Citi were fined 13.7 billion won ($9.5 million) and 4.7 billion won, respectively, by the Securities and Futures Commission, according to the report which didn’t say where it obtained the information.
Barclays said it’s considering a response and remains “committed to maintaining the highest standards of professional conduct and the orderly and transparent operation of markets.” Citi and the SFC didn’t immediately respond to Bloomberg’s requests for comments.
Naked short selling refers to an investor selling shares without first borrowing them or determining they can be borrowed, and is considered illegal in South Korea.
The country has been increasingly cracking down on illegal short-selling since banning the practice last year. Global investment banks, including BNP Paribas SA and HSBC Holdings Plc, have faced such probes and fines.
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