Yoon: "Short Selling Causes Huge Losses for Individuals... Ban Until Fundamental Improvement Plan Is Made" (Update)

Mention of 'Short Selling Ban' in State Council Opening Remarks
Order to Financial Services Commission and Financial Supervisory Service for 'Individual Investor Protection' Measures

President Yoon Suk-yeol stated on the 14th, "Short selling will be banned until fundamental improvement measures are created to prevent further damage."

At the Cabinet meeting held at the Yongsan Presidential Office that morning, President Yoon said, "Neglecting the issue of illegal short selling makes fair price formation difficult, causing significant losses to individual investors, as well as leading to a decline in trust in the securities market and investor withdrawal."

President Yoon first explained the purpose of the short selling ban, saying, "Since last week, short selling has been temporarily banned to prevent illegal market disruption and to protect our stock market and 14 million individual investors."

[Image source=Yonhap News]

He continued, "Some are concerned that this short selling ban might make it difficult for Korea to be included in the Morgan Stanley Capital International (MSCI) developed markets index," but emphasized, "Unlike the United States, our securities market is highly volatile and has a high proportion of individual investors, so I believe that, in the long term, this ban will have a positive effect on the competitiveness of our securities market."

President Yoon urged the Financial Services Commission and the Financial Supervisory Service, "I hope you prepare proper solutions to correct the tilted playing field in our securities market and protect individual investors."