• SK FSS proposed revisions to Detailed regulations on financial investment business.
• Follows SK FSC June 2024 launched short selling reform measures.

Overview of Proposed Revisions

• Stipulate requirements that companies intending to engage in short selling must fulfill in terms of internal control standards; regulate the issuance unit of a short selling registration number, the application procedures for initial issuance/change/abolition.
• Present inspection items and methods for investment brokers to confirm whether short selling corporations comply with article 180-6 paragraph 1 of the Capital markets act.
• Create a form to report the results of confirming the compliance status to SK FSS.
• Specify balance information to be submitted to KRX, submission methods/deadline.

Effectiveness

• Comments shall be submitted by 31 January for planned effectiveness from 31 March 2025