Financial Authorities Hold Emergency Meeting... Considering Market Stabilization Measures Including 'Short Selling Ban'

[Asia Economy Reporter Park Ji-hwan] As the domestic financial market fails to stabilize despite the financial authorities' plan to temporarily expand the designation of short-selling overheated stocks, they are preparing to take additional market stabilization measures.

On the 13th, the Financial Services Commission held an emergency meeting chaired directly by Chairman Eun Sung-soo to review policies necessary for market stabilization.

The market expects that a temporary ban on short-selling is imminent.

According to the financial authorities, before the market opened that day, the Financial Services Commission convened an emergency meeting chaired directly by Chairman Eun to review market stabilization measures.

Among the measures the Financial Services Commission may introduce are a temporary ban on short-selling, a stock market stabilization fund, and tax-exempt long-term stock funds. Of these, the implementation of a temporary ban on short-selling appears most likely.

On that day, the KOSPI index opened at 1722.68, down sharply by 6.09% from the previous day (1834.33), and during the session, it even fell below the 1700 level. This is the first time the KOSPI has closed below 1700 since October 5, 2011 (1666.52).

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