South Korea's financial regulator, the Financial Services Commission (FSC), confirmed on Friday in a statement that the short-selling ban will be lifted on March 31.
"We expect that short selling, which is being fully resumed for the first time in about five years based on a computer system, will enhance the external credibility and market efficiency of our stock market," the FSC commented.
Previously, the Korea Exchange revealed that it developed a "naked short-selling detecting system" (NSDS) that is able to pin down illegal activities by comparing the balance information with transaction history. The system will go live with the return of short selling.
