South Korea Considers Implementing Short Selling Ban in Response to Stock Market Plunge

The Korea Exchange has recently examined the technical feasibility of temporarily banning short selling and reducing the limits on stock price fluctuations to address the severe drop in the stock market. The assessment included the system's execution capability and the time required for adjustments, and it has currently only confirmed technical feasibility, not actual implementation. The exchange also evaluated further narrowing the current 30% daily price fluctuation limit to restrict the daily decline of individual stocks during extreme market conditions. The Ministry of Economy and Finance held an emergency meeting to assess market conditions, stating that it will maintain the highest alert status and initiate a 24-hour monitoring mechanism. As the stock market continues to plummet, the temporary ban on short selling has become a primary demand of retail investors, with a related petition in the National Assembly garnering support from about 10,000 people. Some lawmakers have suggested restarting the Securities Market Stabilization Fund. Analysts indicate that a short selling ban could help control further declines. However, this measure may conflict with South Korea's goal of being included in the MSCI developed market index, and the exchange has not yet received any related requests from the government nor has it formally studied the ban on short selling.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.