(Bloomberg) -- South Korea has fined Barclays Plc and Citigroup Inc. for naked short selling, according to people familiar with the matter, 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 ($3.2 million), respectively, by the Securities and Futures Commission, said three people, who asked not to be identified discussing internal matters.
The final penalties by the SFC were roughly 80% lower than the fines proposed earlier by the Financial Supervisory Service as the commission deemed the banks’ violation of rules as unintentional, two of the people said.
The Chosun Ilbo newspaper earlier reported on the penalties.
Barclays said in an emailed statement it’s considering a response and remains “committed to maintaining the highest standards of professional conduct and the orderly and transparent operation of markets,” without confirming or denying the fines.
Citi declined to comment. The SFC and Financial Services Commission declined to comment.
Read: South Korea’s Probe Alleges $156 Million of Illegal Short Trades
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.
(Updates throughout with new attributions and details.)
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