In our view, there is a high probability that the the temporary ban on short selling in Korea which currently lasts until end of June 2024, could be extended further to 2Q 2025.
What is covered in the Full Insight:
The Ban on Short Selling Stocks in Korea
Creation of Naked Short Selling Detection System (NSDS)
Concerns about Extending the Ban
Changes to Stock Loan Repayment Period and Collateral Ratio
Conclusion
Boomeranged on Wed, 22 May 2024 18:17
The South Korean Presidential Office stated today that the comprehensive BAN on short selling in Korea will remain in place beyond end of June 2024. According to a senior official at the Presidential Office, the entire computer system that tracks the short selling needs to be constructed and fully operational before the short selling will be allowed again (which we believe is likely around 2Q25).
SUMMARY
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