Financial Supervisory Service chief Lee Bok-hyun speaks in a press conference held in central Seoul on Tuesday. [YONHAP]

Korea’s financial watchdog reported new cases of naked short selling by two additional global investment banks worth 54 billion won ($42 million).  
 
One investment bank shorted two stocks for three months from March 2022, while the other shorted three stocks from January 2022 through April last year, the Financial Supervisory Service (FSS) said Sunday.  
 
Naked short selling is selling tradable assets without borrowing them first, which is illegal in Korea.
 
The FSS said it will swiftly take necessary measures to impose penalties on the banks.
 
 
It has expanded its investigation into global investment banks over illegal short selling since last year. In December, it slapped BNP Paribas, HSBC and executing brokerage firms with a combined 26.52 billion won for illegal short selling.

BY JIN MIN-JI [jin.minji@joongang.co.kr]