• SK FSS said it would start the issuance of a registration number for large-scale short selling companies from 7 January 2025, as part of the short selling computerization plan.
• Follows SK FSC June 2024 launched short sale reform measures.
• Also follows SK FSS December 2024 outlined achievements and 2025 plans.

Overview of Issuance

• Companies whose net short position balance amounts to over 0.01% of the total issuance volume or KRW 1bn must obtain a registration number for short selling.
• To apply for the registration number, short selling companies must submit account information of each independent transaction unit as well as the companies to SK FSS.
• SK FSS will issue registration numbers to investors and independent transaction units after checking whether they meet requirements for independent transaction units.
• The naked short selling detecting system (NSDS) aggregates all orders of investors who have been issued a registration number by registration number, collects transaction information even when using multiple securities companies and accounts.
• In addition, the NSDS will continuously detects whether there is naked short selling.

Future Plans

• SK FSS will issue registration numbers in sequence to investors who have completed the establishment of an internal balance management system by Mar. 2025.
• Computerization taskforce will provide administrative support, to ensure that investors fulfill prerequisites for resuming short selling by inspecting trustee securities houses.

Effectiveness

• The registration number issuance will commence on 7 January 2025.