South Korea weighs technical options for a short-selling halt as markets slide

SEOUL, July 30 — South Korean exchanges have recently reviewed the technical feasibility of emergency steps such as a temporary ban on short selling and tighter daily trading bands, as the market faces sharp declines, Yonhap News reported. According to sources, the exchanges examined whether their systems could carry out such measures and how long implementation would take. The review confirmed only technical readiness and does not signal any decision or intention to activate the measures. The Korea Exchange is also looking at cutting the current 30% daily price limit further to help contain extreme single-day moves in individual stocks. Earlier, the Ministry of Economy and Finance convened an emergency meeting to assess market conditions, saying it would remain on the highest level of alert given elevated volatility versus both overseas markets and historical norms. The ministry added it would run a joint 24-hour monitoring system with relevant agencies. As losses have mounted over successive sessions, retail investors have increasingly called for a short-selling ban. A related parliamentary petition drew roughly 10,000 supporters within two days of going public, and some lawmakers have urged reviving the Securities Market Stabilization Fund. Local brokerage analysts said a short-selling halt could help limit further downside while deleveraging in single-stock leveraged ETFs still needs time to play out. They also cautioned that a ban could run counter to South Korea's goal of inclusion in the MSCI Developed Markets Index. The Korea Exchange said it has received no request from the government, has not conducted a formal study on banning short selling, and noted that such a decision is not within its own authority.