Foreign brokerages have reportedly asked South Korean securities firms whether regulators could abruptly restore a short-selling ban, as foreign investors cut exposure to two leading chipmakers during market volatility.
The Korea Herald reported the inquiries, citing financial-industry sources. A local securities firm official told the newspaper that foreign clients feared regulators might act with little notice, saying they were concerned authorities could “pull the short selling ban card overnight.”
BusinessKorea reported that foreign investors net-sold shares worth 7.6 trillion won in Samsung Electronics and SK hynix combined from Nov. 2-6, 2026, citing Korea Exchange and Koscom Check data. The Korea Herald also reported the figure. It separately reported that foreign ownership of Samsung Electronics was 45.95%, its lowest level in about 17 years, while SK hynix stood at 48.27%, a five-year low.
The concern recalls South Korea’s 2023 short-selling ban. On Nov. 5 that year, the Financial Services Commission (FSC) announced a prohibition covering shares listed on the KOSPI, KOSDAQ and KONEX markets. It took effect the next day and was scheduled to last through June 2024. The FSC said it acted after detecting illegal naked short selling, including a large-scale case involving global investment banks, and cited concerns about fair pricing and market confidence.
The latest emergency measure addresses margin loans, not short selling. At a joint market-situation meeting on Nov. 6, South Korean authorities announced a three-month exemption from securities firms’ requirement to maintain a 140% collateral ratio on margin loans. It took effect Nov. 9, with the stated aim of limiting forced sales as share prices fell.
Authorities said they would monitor markets and capital flows and prepare additional stabilization measures if volatility increased. The announcement did not set a date for another policy decision.
