South Korea’s Market Regulator on Stock Short Selling Ban
The head of South Korea’s Financial Services Commission (FSC), Kim Joo-hyun, has stated that it is difficult to determine a specific date for lifting the current ban on stock short selling. The ban was implemented in November 2022, amid concerns about excessive short selling and market volatility. The initial plan was to lift the ban in June 2023, however, market conditions and other factors will be considered in the decision-making process.
The FSC is responsible for overseeing the South Korean financial markets, including the stock market. Short selling involves selling a borrowed stock with the expectation of buying it back later at a lower price. The ban was intended to curb excessive short selling practices that could lead to market instability and investor losses.
The duration of the ban will depend on various factors, including market conditions, the level of short selling activity, and the effectiveness of other measures taken to stabilize the market. The FSC will continue to monitor the situation and make adjustments as necessary to ensure a fair and orderly market environment for investors.
The decision to lift the ban will be based on a comprehensive assessment of market conditions and the potential impact on investors. The FSC will provide timely updates on its plans and decisions regarding the ban in order to keep market participants informed.
