June 13, 2024 06:51 GMT
S. Korea Extends Stock Short-Selling Ban Through End-Mar '25
SOUTH KOREA
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South Korea's Financial Services Commission (FSC) announced an extension to its stock short-selling ban through the end of March 2025.
- The decision had been touted earlier by representatives of the ruling party, who also flagged plans to increase penalties for violating the existing rules, including the implementation of prison sentences up to life imprisonment.
- The short-selling ban was introduced in November to tackle the practice of naked short-selling. The government is working on a sustem that will allow to fully detect such activities and it should be finalised by the end of 1Q2025.
- The KOSPI Index added around 1% overnight, approaching cyclical highs.
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