Controversy over Short Selling
Financial Supervisory Service (FSS) Chairman Lee Bok-hyun remarked on Oct. 11 that the FSS can take any measures for stock market stabilization in the event of further instability and the options include a complete ban on short selling.
The South Korean government implemented the complete ban in March 2020. It was partially lifted in May last year and the KOSPI 200 and KOSDAQ 150 stocks have been short-sellable since then.
At the parliamentary inspection of the FSS that day, it was also pointed out that the Bithumb management’s illegality allegations need to be investigated. “We are looking into the potential market disturbance related to convertible bonds and bonds with warrants and details cannot be disclosed as inspections are ongoing,” he explained.