South Korea to extend short-selling ban for now

13/6/2024 12:06

        South Korea said on Friday the ban on short-selling of stocks will be extended for now as the government focuses on developing a system to control illicit trading practices before resuming the trading strategy.
        
        The Financial Services Commission said it will focus on establishing an electronic monitoring platform to better detect naked-short sales until March next year, and also strengthen fines involved with illicit trading practices.
        
        Local Yonhap News reported the ban is likely to stay until the end of March next year, without citing anyone.
        
        The ban had been set to expire on June 30.
        
        Short-selling, a practice involving borrowing shares and then selling them in the market, has been an unpopular trading strategy among South Korean retail investors and has been banned since November last year as authorities vowed to root out illegal trading practices including naked short-selling.