Hedge Fund Regal Indicted in South Korea Short-Selling Sweep (1)

South Korean authorities have indicted one of Australia’s largest hedge funds for short selling, indicating Seoul has expanded its crackdown on such trading across the financial industry.

Regal Funds Management Pty Ltd said it was indicted, along with a former employee, for an alleged violation of securities trading regulation in 2019. The charges follow a market-wide review of short selling by the Korean Financial Services Commission, it said in a statement on Friday. A spokesman for Seoul Southern District Prosecutors Office declined to comment.

Regal, which had A$17 billion ($11.4 billion) under management at the end of September, denied the ...