Completion of Computer System Development Ahead of Resumption of Short Sale

In order to prevent illegal short selling, the Korea Exchange has completed the development of a central inspection system for short selling that can constantly check the details of short selling transactions by institutional investors.

Starting tomorrow (6th), we also plan to start a linkage test with major institutional investors who have established a balance management system.

The financial authorities have been pushing for the establishment of a short selling computer system to prevent borrowed short selling and post-inspection as a way to improve the system in advance ahead of the resumption of short selling on March 31.

The system developed this time detects illegal short selling by comparing the balance information of institutional investors reported in connection with the balance management system with all trading details.The

exchange began developing the system in July after the government announced plans to improve the short selling system in June last year.