S Korea – FSS Plans to Thwart Illegal Short Selling

S Korea – FSS Plans to Thwart Illegal Short Selling

On 25 April 2024, South Korea's financial market watchdog, the FSS announced it was checking the effectiveness of a new monitoring system designed to detect illegal short selling of domestic stocks.

  • Ban short selling continues through 30 June 2024
  • New system will process all short selling transactions by institutional investors; and
  • institutional investors must have an internal system to autonomously check and manage their positions in real time and pre-emptively block naked short selling