South Korea's government, along with the ruling People Power Party, has decided to extend the ban on short selling until March 2025. This move, reported by Yonhap News Agency on Thursday, also includes increased fines and stricter punishments for those who engage in short selling practices.
Originally set to expire on June 30, the ban on short selling aims to protect the stability of the South Korean stock market. Short selling, which involves borrowing shares and selling them with the intention of buying them back at a lower price, has been a contentious strategy among retail investors in the country.
Since its initial implementation in November last year, the ban has been part of a broader effort by authorities to eliminate illegal trading practices, including naked short-selling. By extending the ban, South Korea reaffirms its commitment to creating a fair and transparent market environment for all investors.
The extension is expected to have significant implications for both domestic and international investors who monitor South Korea's evolving financial regulations. As the global market remains interconnected, such regulatory moves are keenly observed by business and tech enthusiasts, entrepreneurs, and young professionals alike.
Reference(s):
cgtn.com
