Korea Exchange Assesses Technical Feasibility of Temporary Short Selling Ban

Korea Exchange reviews system requirements for halting short sales and narrowing price limits to curb volatility, though no government mandate has been issued.

Woofun AI reports that the Korea Exchange conducted an internal review on July 29 regarding the technical feasibility and system requirements for a temporary ban on short selling and reducing price limits from the current 30%. Sources indicated that only technical viability was confirmed as part of a screening process for emergency measures, not as a prerequisite for implementation.

The exchange stated it has not received related requests from the government nor formally discussed a ban. This review follows market declines and political pressure to restart the Securities Market Stabilization Fund, despite concerns that restricting short selling could hinder South Korea's inclusion in the MSCI developed market index.