South Korea to Lift Short-Selling Ban

In a significant move to enhance market efficiency and 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, underpinned by a state-of-the-art computer system.

Enhanced Market Surveillance with NSDS

The Korea Exchange has developed a "naked short-selling detecting system" (NSDS), designed to identify and curb illegal activities by meticulously comparing balance information with transaction history. This innovative system is set to become operational alongside the reintroduction of short selling, ensuring a transparent and fair trading environment.

FSC's Optimistic Outlook

"We anticipate that the resumption of short selling will significantly improve the external credibility and efficiency of our stock market," stated the FSC. This move is expected to attract more investors and enhance the dynamism of South Korea's financial markets.