S Korea – KRX Short Selling Balance Reporting

S Korea – KRX Short Selling Balance Reporting

On 28 January 2026, KRX revised KOSPI, KOSDAQ, KONEX markets regulations.

  • KRX published the revised KOSPI market business regulations, KOSDAQ market business regulations, as well as KONEX market business regulations.
  • These revisions follow SK GVT's efforts to promote inclusion in the MSCI advanced markets index and will be reflected in the Market surveillance regulations.
  • Follows KRX November 2025 proposed revising Market surveillance regulations.
  • Also follows SK GVT January 2026 issued MSCI advanced markets index.

Outline of Revisions

  • Firms subject to naked short selling detection system (NSDS) balance reporting will be exempted from the duty to verify, record, and maintain records on naked short selling.
  • The exemption applies even if they are subject to post-management due to insufficient settlement volume.

Effectiveness

  • The three revised regulations will be effective from 29 January 2026.