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South Korea to Review Short-selling Rules if Market Turmoil Ends

On March 29, the head of South Korea’s Financial Supervisory Service said that if the current financial market turmoil ends soon, South Korea may consider relaxing stock short-selling rules later this year.

Lee Bo-hyun, head of the South Korean Financial Supervisory Service, said in an interview that if the impact of the financial turmoil is eliminated within a few months, they will study the relaxation of short-selling (rules) supervision, and hope it will be realized this year.

He did not, however, elaborate on the conditions or direction of the rule change. South Korea still has a strict set of regulations on short-selling stocks, fearing exacerbating stock price volatility.