South Korea to Lift Short-Selling Ban

In a significant move to enhance market efficiency and external credibility, South Korea's Financial Services Commission (FSC) has announced the lifting of the short-selling ban effective March 31. This decision marks the first full resumption of short selling in approximately five years, facilitated by an advanced computer system designed to detect and prevent illegal activities.

Enhanced Market Integrity with New Systems

The Korea Exchange has developed a state-of-the-art "naked short-selling detecting system" (NSDS), which meticulously compares balance information with transaction history to identify and curb illegal short-selling practices. This system will be operational concurrently with the reintroduction of short selling, ensuring a more transparent and efficient market environment.