According to Korean media reports, South Korean retail investors' share of investment in overseas stocks rose in the first week after South Korea's financial regulator announced a total ban on short selling from November 6。As a result of the South Korean government's ban on short selling, volatility in the South Korean stock market has further increased, with many individual South Korean investors choosing to "sell South Korean domestic stocks and buy foreign stocks."。Some analysts believe that the reason why South Korean individual investors will favor Chinese stocks in the near future, and choose to enter the Chinese stock market "bottom," reflecting the Chinese economy, Sino-US relations expected changes.。

On November 9, according to media reports, Kim Joo-hyun, head of the Korea Financial Services Commission (FSC), said at a congressional audit meeting when asked about a possible extension of the short-selling ban: "I think if the current situation does not improve, we will have to consider many issues.。The FSC banned short selling of shares from Monday, citing market volatility and illegal short selling that adversely affected market stability.。The ban on short selling is valid until the end of June next year.。At a previous press conference, Kim had said whether to restart short selling after the first half of next year would be decided based on the overall situation at the time, such as market trends and the implementation of system improvements.。

South Korea's Financial Supervisory Authority issued a statement on November 5, saying it would temporarily ban short selling of stocks from November 6 until June 2024 to allow regulators to improve rules and systems.。Earlier, the Korea Financial Supervisory Authority also announced plans to launch a full investigation into short selling of shares by global investment banks, which will begin in November.。The Korean Financial Supervisory Authority will investigate all short selling since May 2021, when South Korea partially lifted a ban on short selling of stocks imposed during the outbreak.。