South Korea Extends Stock Short-Selling Ban to Promote Fairness

South Korea will re-impose a ban on short-selling shares until at least June 2022 to create a "level playing field" for retail and institutional investors. The ban, which was lifted in May 2021 for certain stocks, aims to address unfair trading practices by major foreign investment banks. The Financial Services Commission (FSC) will review market activity in June to determine if the ban can be lifted. The FSC has also established a team to investigate illegal activities such as naked short-selling. Resolving issues related to short-selling regulation is seen as crucial for South Korea's potential upgrade to developed-market status by influential index provider MSCI.