South Korea planned to restrict stock short-selling for the next three months to stabilize the local stock market, which showed an increased volatility in recent days, the finance ministry said Tuesday.
Minister of Economy and Finance Hong Nam-ki, who doubles as deputy prime minister for economic affairs, told a meeting with economy-relevant ministers that the government planned to ease requirements for the designation of stocks subject to a ban on short-selling for the next three months as part of the market stabilization measures.
Under the measures, stocks who post a sharp increase in short-selling are subject to a ban on short-selling at least one day. The measures are to be introduced beginning Wednesday.
The benchmark Kospi index plunged over 4 percent on Monday, but the stock market rout weakened with the index falling 0.26 percent as of 11:15 a.m. local time.
The won/dollar exchange rate was quoted at 1,199.4 won per dollar, down 4.8 percent from the previous close. The exchange rate jumped 11.9 won in the previous day.
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