Korea Exchange inspection of the technical feasibility of a temporary ban on sales of space and reduction of price restrictions

ON 30 JULY, ACCORDING TO THE KOREAN FEDERATION, ON 29 JULY, THE KOREA EXCHANGE CONDUCTED AN INTERNAL REVIEW OF THE TECHNICAL FEASIBILITY AND SYSTEM TIME REQUIRED FOR A TEMPORARY BAN ON AIR SALES AND A REDUCTION IN THE PRICE LIMIT (CURRENTLY 30 PER CENT) IN RESPONSE TO THE RECENT SHARP SWINGS IN THE STOCK MARKET. ACCORDING TO THE SOURCE, “TECHNICALLY FEASIBLE ONLY” IS NOT PREMISED ON IMPLEMENTATION, BUT IS AN INVENTORY IN THE REVIEW OF AVAILABLE EMERGENCY RESPONSE TOOLS. THE RECENT COLLAPSE OF THE KOREAN STOCK MARKET AND INCREASED DAMAGE TO INDIVIDUAL INVESTORS HAVE PROMPTED SEVERAL MEMBERS OF THE PARLIAMENTARY COUNCIL TO URGE THE AUTHORITIES TO CONSIDER A TEMPORARY BAN ON SALES AND THE REACTIVATION OF THE SECURITIES MARKET STABILIZATION FUND. A PETITION FOR THE CONSENT OF A NATIONAL WITH A MORATORIUM ON AIR SALES WAS APPROVED BY MORE THAN 10,000 PEOPLE WITHIN TWO DAYS OF ITS OPENING. BUT THERE IS A CONFLICT BETWEEN THE BAN ON SALES AND THE REPUBLIC OF KOREA’S PROMOTION OF THE INCORPORATION OF MCI’S DEVELOPED MARKET INDEX TARGETS, FOLLOWING A 17-MONTH-LONG VACANCY BAN FROM NOVEMBER 2023 TO MARCH 2025, WHICH LED TO A LOWER MARKET ACCESS RATING FOR KOREA. EXCHANGE OFFICIALS INDICATED THAT THEY HAD NOT RECEIVED REQUESTS FROM THE GOVERNMENT AND HAD NOT FORMALLY DISCUSSED THE BAN ON AIR SALES。