Illegal short selling suspicions reported to FSS rise

The number of suspected illegal short selling cases reported to South Korea’s financial regulator has risen steadily in recent years, as a new system allows authorities to monitor institutional investors’ short selling activity in real time.

The increase has been driven in part by the launch of its naked short selling detection system, known as NSDS, but market watchers say authorities should move faster to investigate cases, impose sanctions and recover illicit gains.

The Financial Supervisory