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  • hangook77
  • The Legend

    • 4847

    • September 14, 2017, 09:10:12 am
    • Near Busan

Jim Rogers, who is often regarded as one of the world's three most renowned investors along with Warren Buffet and George Soros, did not hesitate to criticize the Korean government for its tough financial regulations that he said go against global standards.

"South Korea is one of the most difficult markets in the world for international investors to invest in," he told The Korea Times online from his residence in Singapore. "Seoul says we want foreign investors, and we want people to invest here. But their actions say something else."

His criticism was leveled at Korea's indefinite prohibition of shorting small-cap stocks, which has been enforced since the outbreak of the coronavirus pandemic in 2020.

Although the Financial Services Commission partially lifted its ban on the short selling of KOSPI 200 and Kosdaq 150 shares last May, it is still unclear when the authorities will permit the complete resumption of the practice of betting on the fall of a stock's price. MSCI cited the uncertainty as one of reasons for its refusal last year of Korea's request to upgrade its domestic equity market status to "developed" from "emerging."

"Short sellers can stop stocks from going up too much. If they collapse, then short sellers have to buy them, and that will help the stocks from going down too low," Rogers said. "I haven't sold short in a while, but short selling is good for any market where it exists, including Korea."

The 79-year-old urged Korean policymakers to immediately stop all of the country's unreasonable regulations, including the short-selling ban.

He mentioned his own experience as another example, complaining about a regulation that forced him to sell his Korean Air shares in a foreign brokerage firm and to buy them back through a Korean broker when he sought to move the stocks to a securities firm here.

"Who comes up with these crazy regulations in South Korea?" he asked. "I know business people who tell me it is easier to do business in China than it is in South Korea, because of all the regulations and controls."

  • gogators!
  • Waygook Lord

    • 5401

    • March 16, 2016, 04:35:48 pm
    • Seoul
Buffet seems to have no problems with investing in Korea.