By Cynthia Kim and Jihoon LeeSEOUL (Reuters) - South Korea's finance minister defended the government's ban on short-selling of stocks, an announcement that comes ahead of general elections next year and has drawn criticism from market players who say the move could hurt the country's global credibility. The financial regulator on Sunday reimposed a full ban on short-selling until the end of June 2024 to create a "level playing field" for retail and institutional investors. "The move completely thwarted Korea's plans to convince MSCI that it deserves a spot in the developed market status. The number of retail stock trading accounts has roughly doubled since 2017 to about 14 million, with about one in every five Koreans having an account. South Korea's Financial Supervisory Service in October said it would likely fine two Hong Kong-based investment banks it determined had engaged in naked short-selling transactions worth 40 billion won ($29.58 million) and 16 billion won respectively.

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Persons: Cynthia Kim, Jihoon Lee SEOUL, Choo, Korea's, we're, Cho Jun, kee, Jihoon Lee, Tom Hogue, Navaratnam Organizations: MSCI Inc, SK Securities, Financial, Service, Credit Suisse Locations: Philippines, Korea, South Korea, Portugal, Hong Kong