AsianFin -- South Korea is on track to lift its ban on short selling across all stocks, effective March 31, according to the country’s top financial regulator.
Financial Services Commission Chairman Kim Byoung-hwan stated at a briefing on Monday that fully resuming short sales is necessary, and justifying only a partial lift would be difficult. He emphasized that the country's credibility on the global stage is at risk and assured that authorities have worked to implement systems to detect misconduct in stock transactions.
In November 2023, South Korea’s market regulators imposed a ban on all forms of short selling for listed stocks in its $1.7 trillion equity market after retail investors voiced strong opposition to the practice. However, the move has faced criticism for potentially undermining the market's appeal.
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