S Korea – Gov’t Approves Revised Short Selling Revised Rules

S Korea – Gov’t Approves Revised Short Selling Revised Rules

On 18 February 2025, the S Korean government approved the revision bill for the Enforcement Decree of the FSCMA, aimed at enhancing rules on short selling practices.

The revision is aimed at enhancing rules on short selling practices and includes:

  • Imposing a limit on institutional investors stock repayment period
  • Introducing measures intended to prevent naked short selling

The financial authorities and related organizations will continue to work to ensure a seamless implementation of follow-up measures in preparation for the resumption of short sale transactions as scheduled from 31 March 2025.