Seoul: Short selling activity in South Korea has returned to near pre-ban levels about a month after a yearlong suspension was lifted, the bourse operator said Sunday.
According to Yonhap News Agency, South Korea reinstated short selling for all listed companies on March 31, ending a ban that began in November 2023 following revelations of naked short selling violations involving several global investment banks.
The Korea Exchange reported that short selling on the main KOSPI and secondary KOSDAQ markets averaged 848.5 billion won per day between March 31 and Friday, totaling 20.4 trillion won. This figure marked a slight rise from the daily average of 788.4 billion won tallied during a month just before the country banned the trading practice.
Foreign investors accounted for 85.1 percent of the short selling activity, while institutional investors took up 13.7 percent. Short selling turnover peaked at 1.7 trillion won on the first day of resumption but has since declined steadily, falling to 627.2 billion won as of Friday.