{"id":2203353,"date":"2024-01-05T08:00:54","date_gmt":"2024-01-04T23:00:54","guid":{"rendered":"https:\/\/koreapro.org\/?p=2203353"},"modified":"2024-01-04T17:46:00","modified_gmt":"2024-01-04T08:46:00","slug":"yoon-suggests-short-selling-ban-extension-amid-political-tensions","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/01\/yoon-suggests-short-selling-ban-extension-amid-political-tensions\/","title":{"rendered":"Yoon suggests short-selling ban extension amid political tensions"},"content":{"rendered":"
President Yoon Suk-yeol <\/span>announced<\/span><\/a> on Thursday while receiving the first government policy report of the year that the country\u2019s ban on stock short selling will remain in place until the government has resolved the harmful effects of short selling on retail investors. Yoon dismissed speculations that the ban, initially set to <\/span>last until June<\/span><\/a>, would be lifted after the general elections.<\/span><\/p>\n The Financial Services Commission <\/span>announced<\/span><\/a> the short-selling ban in November, explaining that the move sought to curb stock market volatility and ensure market stability and fair pricing. The short-selling ban is part of the government\u2019s broader crackdown on illegal short-selling activities by <\/span>global investment banks<\/span><\/a>.<\/span><\/p>\n Why It Matters<\/b><\/p>\n Yoon\u2019s assertion that South Korea\u2019s short-selling ban might extend beyond its initial eight-month duration, emphasizing it won\u2019t be lifted after the general elections, could deter foreign investment, as it disrupts conventional market mechanisms and perceived stability. This, in turn, might lead to reduced foreign capital inflows, impacting the South Korean economy, which relies on foreign investment for growth and stability.<\/span><\/p>\n Yoon\u2019s dismissal of critiques that the ban was a populist move aimed at the upcoming election without being prompted highlights the political sensitivities surrounding the decision. With parliamentary elections looming in 97 days and reports of <\/span>significant membership growth<\/span><\/a> in a new party led by former People Power Party leader Lee Jun-seok, Yoon and the ruling party are likely under pressure to distance the policy from perceived populist tactics.<\/span><\/p>\n