President Yoon Seok-yeol has announced a prohibition on short selling until fundamental reform measures are established.
During his address at the Cabinet meeting held at the Blue House in Yongsan on Nov. 14, President Yoon Seok-yeol stated, “To prevent further damage, we will prohibit short selling until fundamental reform measures are devised.”
He continued, saying, “I believe that in the long term, this will have a positive impact on the competitiveness of our securities market.”
President Yoon also said, “I understand that there are concerns in some quarters that the recent short selling ban may make it difficult for inclusion in the Morgan Stanley Capital International (MSCI) World Index. However, unlike the United States, our securities market has high volatility, and the proportion of individual investors is significant.”
He went on to emphasize, “Neglecting the issue of illegal short selling not only makes it difficult to achieve fair price formation, causing significant losses to individual investors, but also leads to a decline in trust in the securities market and investor exodus. I hope the Financial Services Commission and the Financial Supervisory Service will correct the skewed playing field in our securities market and provide a proper solution to protect individual investors.”