South Korea's Financial Services Commission (FSC) has enacted a temporary halt on stock short selling, set to last until mid-2024, in response to concerns over market volatility and illegitimate trading practices. FSC chief Kim Joo-hyeon, alongside Financial Supervisory Service (FSS) head Lee Bok-hyun, announced the suspension, citing heightened market risks due to global economic challenges and regional conflicts. The decision aims to preserve market stability and ensure fair stock pricing, amidst persistent issues with illegal short selling by certain foreign and institutional entities. Additionally, the FSS will establish a task force to scrutinise international banks for such illegal activities. This regulatory move is part of a broader reform agenda to eliminate unfair trading advantages and to develop a real-time monitoring system to prevent unauthorised short selling practices.