South Korea – FSC Short Selling Exceptions

South Korea – FSC Short Selling Exceptions

On 11 March 2021, SK FSC amended financial investment service regulations.

  • SK FSC proposed amendments to financial investment services regulations short sales.
  • Follows January 2020 SK FSC amendments for restrictions on short selling.

Short Sales and Capital Increases

  • Provides that FSC can separately determine calculation method for each type of credit.
  • Exceptions allow for short sellers to participate in paid-in capital increase of an issuer.
  • Applies to independent trading units that do not sell short until the date when the issuance price of the capital increase is determined, after the plan is announced.
  • A person who has entered into a lending contract for the purpose of short selling shall transfer lending transaction information through a device that automatically records the information, that cannot be forged or altered, or through an investment broker.


  • Opinions may be submitted by 16 March 2021.