South Korea pledged on Tuesday to temporarily tighten stock short-selling rules to stabilise local financial markets, Finance Minister Hong Nam-ki said at a scheduled meeting. Hong said the Financial Services Commission will announce details of the strengthened regulations after local financial markets close at 3:30 pm (0630 GMT).
Key notes
- South Korea is to temporarily tighten stock short-selling regulations.
- The Finance Minister is to announce details after local financial markets close on Tuesday.
FX implications
The Korean won dropped more than 1% against the US dollar in the turmoil pertaining tot he coronavirus. This is prompting South Korea’s finance ministry to issue a verbal warning against “excessive” movements in the currency market. “We’re closely monitoring speculative transactions that seems to be taking advantage of unstable market sentiment. The herd-like behaviour seems excessive short-term,” a finance ministry official told Reuters
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