The partial resumption of short-selling in Korea is a step in the right direction. It makes the market more accessible for global investors, many of whom have found it difficult to allocate capital to Korea without being able to hedge their portfolios through covered short-selling. PASLA also welcomes the FSC’s moves to facilitate wider participation in securities lending and short-selling, which will add further liquidity to Korean equities. Regulated, transparent and covered short-selling results in more efficient and resilient markets, benefiting all participants and economies as a whole. We look forward to the full resumption of short-selling soon, as we have seen in other markets that enacted temporary bans.
