The chief of South Korea's financial regulator said Monday that the country will lift its temporary ban on short selling next month as planned, and the resumption will have a limited market impact.
In a press meeting, Kim Byoung-hwan, the chief of the Financial Services Commission, said the short selling scheme will be fully resumed as planned March 31 as long as no systematic glitches are found.
"We have updated related systems and regulatory rules for over one year," Kim said. "We have no reason to partially open short selling."
Kim said his agency is working to impose some curbs in case of excessive short selling of specific stocks out of concerns over severe volatility.
The country imposed a temporary ban on the practice in November 2023 after a series of naked short selling violations involving several global investment banks were discovered.
Before the short selling ban, a total of 350 listed firms, namely the constituents of the Kospi 200 index and the Kosdaq 150 index, had been subject to short selling.
But the regulator is planning to allow short selling on all publicly traded companies here. (Yonhap)
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