Authorities are weighing stabilization steps including possible short-selling restrictions as KOSPI and KOSDAQ tumble, while a National Assembly petition seeks a six-month KOSDAQ-wide ban and officials assess market-structure concerns.
South Korean authorities have shifted into emergency market monitoring as a sharp equity selloff intensifies pressure for short-selling curbs. Retail investors and some lawmakers are pushing for intervention, including a National Assembly petition seeking a six-month suspension of short selling across all KOSDAQ stocks and broader calls to revisit restrictions in the wider market. Officials are reviewing stabilization options such as a possible short-selling ban and tighter daily price limits, though the Korea Exchange later said it had received no government directive and had not carried out substantive policy research on changing short-selling rules. The debate comes as policymakers weigh near-term market support against South Korea’s longer-term goal of improving market accessibility and gaining inclusion in MSCI developed market indexes.