Cheong "Difficult to continue banning short selling... Future expansion of individual short selling"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] The Blue House stated on the 23rd that it is "difficult to continue banning short selling" in response to a public petition calling for the abolition of short selling, and added that it will "expand short selling opportunities for individuals to improve the unfairness between individuals and institutions."

In response to the public petition to abolish short selling, which was signed by 210,000 people, the Blue House said, "Considering the domestic stock market situation, the resumption of short selling in other countries, and foreign investment in domestic stocks, it is difficult to continue banning short selling."

The Blue House explained, "Taking into account market shocks and concerns, short selling will resume for the KOSPI 200 and KOSDAQ 150 constituent stocks starting May 3, and for other stocks, the decision on whether to resume will be made later based on the effects of resumption or ban and market conditions."

They also plan to improve issues related to the short selling system. The Blue House stated, "We will ensure through thorough market surveillance that illegal short selling is inevitably detected," and added, "The scale of short selling by market makers, who are suspected of abusing the system, will be reduced to less than half of the current level, and short selling opportunities will be expanded for individuals."

The Blue House emphasized, "We will complete the remaining system improvements before the partial resumption of short selling without any setbacks and continue policy efforts for the stability and growth of the capital market."