S. Korea fully lifts short-selling ban on Monday

South Korea fully lifted its ban on short-selling on Monday.

Short-selling is now allowed for all listed firms for the first time since March 2020, when the ban was introduced due to the market crash caused by the COVID-19 pandemic.

The ban was partially lifted in May 2021, but temporarily reimposed in November 2023 after a series of naked short-selling violations by global investment banks were discovered.

Ahead of the resumption of short-selling, the Korea Exchange has set a new system to detect any illegal practices.