• SK FSS, KRX issued the final draft of the Integrated short selling guidelines while promoting conversion of the related administrative guidance into detailed regulations.
• In addition, proposed KRX regulations and detailed regulations on short selling.
• Follows SK FSS June 2024 proposed short selling guidelines checklist.
• Also follows SK FSS September 2024 issued integrated short selling guidelines.
• Follows SK FSS December 2024 outlined various achievements 2025 plan.

Overview of Detailed Regulations and Guidelines

• Differentiate internal control standards of short selling companies according to the scale of short selling, the possibility of naked short selling; specify inspection items and methods to confirm naked short selling prevention measures by securities houses.
• Establish related administrative procedures to confirm entities subject to the issuance of a short selling registration number; specify information to be submitted to KRX by large-scale short selling companies and the deadline for submitting the information.

Overview of KRX Regulations

• The Regulations on market surveillance grant the right to request the submission of information to KRX's market surveillance committee, with a view to verifying the accuracy of information submitted to the naked short selling detection system (NSDS).
• The Detailed regulations on market surveillance specify reporting forms, deadlines.
• The Detailed regulations on securities market business oblige securities houses to check and enter short selling registration numbers when submitting a quotation.

Future Plans

• The authorities will invite public comments on the proposed revisions to the Detailed regulations on financial investment business by Jan. 31, 2025, to complete revisions by March 2025 after undergoing required administrative procedures.
• Consultation period for KRX regulations like Regulations on market surveillance due on 24 January 2025; the authorities will hold a briefing session for securities houses in January 2025, an open forum with investors on short selling computerization in February 2025.
• In addition, the authorities will organize an opening ceremony for the establishment of computer facilities for detecting naked short selling and an inter-exchange computerization linkage, and carry out NSDS demonstration in March 2025.