S Korea – FSS US Trade Policy, Re: Short Selling

S Korea – FSS US Trade Policy, Re: Short Selling

On 20 March 2025, SK FSS held a financial review meeting after US FOMC had decided to pause interest rate cuts, to request comprehensive monitoring and management.

  • Will monitor external conditions, manage risks in the overall market, including KRW/foreign currency liquidity of financial companies, stocks, bonds, short-term funds.
  • Support financing for competitive companies by providing accurate information to investors, ensure the provision of timely support by analyzing the impact of changes in US industry-specific tariff and subsidy policy changes, industry-specify cycle changes.
  • Promote tasks to advance the capital market like enhancing shareholder protection, improving short selling system; manage market risks to ensure that financing and investment activities are not disrupted by anxieties caused by the Homeplus crisis.
  • Manage soundness, liquidity of small, medium-sized financial firms to prevent extra concerns since the management improvement recommendation issued on 19 March 2025.