Top court upholds HSBC's acquittal in short-selling case

The Supreme Court has reaffirmed its earlier decision to acquit HSBC's Hong Kong unit of charges related to violating Korea's short-selling rules. The case, initiated by prosecutors in March 2024, marked the first criminal instance of its kind in the country. The charges stemmed from alleged naked short selling of shares of nine publicly traded companies, valued at approximately 15.8 billion won ($11.8 million), between August and December 2021.

Naked short selling involves the practice of short selling stocks without first securing them or ensuring their availability. Prosecutors accused three bank employees of knowingly participating in this illegal activity. However, the Seoul Southern District Court had previously acquitted the bank, citing a lack of evidence proving the employees' intent to violate local rules. The appellate court later upheld this acquittal before the Supreme Court's final decision.