May 3 Resumption of short selling of KOSPI 200 and KOSDAQ 150 stocks

Other sports are banned without a deadline… Resolution by the Financial Services Commission

(Seoul = Yonhap News) Reporter Kim Nam-kwon = The ban on short selling will be extended for about one month until May 2nd.

Afterwards, short selling will resume on May 3rd, only for constituents of the KOSPI 200 and KOSDAQ 150 indexes.

The Financial Services Commission held an interim financial committee meeting on the afternoon of the 3rd and decided on such a plan.

The ban on short selling, which was temporarily applied until March 15th, will be extended until May 2.

The Financial Services Commission banned short selling for six months after the stock market crashed due to the Corona 19 incident in March last year. Since then, the ban on short selling has been extended for another 6 months in consideration of the situation where the Corona 19 incident is not over.

The financial authorities had a strong willingness to resume short selling this time, but as some political circles and individual investors’Donghak ants’ increased their opposition, they also showed a step back, saying, “Nothing has been decided.”

In the end, it seems that the deadline for the ban on short selling has been extended for a certain period in consideration of the problem of supporting system improvement.

However, from May 3, it decided to partially resume short selling to minimize the market impact.

The KOSPI 200 and KOSDAQ 150 components are subject to partial resumption.

For the rest of the stocks, the ban on short selling will be extended without a separate deadline.

Short selling is an investment technique that realizes a profit by borrowing and selling stocks when a stock price is expected to fall and then buying and repaying stocks when the stock price goes down.

As the criticism that it is a’sloping playground’, which is unfavorable to individual investors, the Financial Services Commission announced that it would finish system improvement by May 3rd.

As such system improvement tasks, he cited reinforcement of market surveillance in exchanges such as shortening the period of detection of non-borrowing short selling, establishment of a computer system for storing loan information for each short selling investor, and securing individual stock loans (2~3 trillion won by the end of April).

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2021/02/03 17:00 sent