The government plans to resume short selling from March 31 of next year after a centralized monitoring system to detect illegal short selling is established. 

Financial Services Commission(FSC) Vice Chairman Kim So-young unveiled the plan on Thursday during a briefing at the Government Complex Seoul. 

Also on Thursday, the commission decided to extend a ban on short selling, which was set to expire at the end of this month, to March 30 of next year. 

Kim noted that the government had, last November, temporarily banned short selling until June this year out of concerns that illegal short selling could hamper the creation of fair prices in the stock market and after assessing that such strategy damages market confidence. 

The Financial Supervisory Service and the Korean Exchange are aiming to set up the centralized short selling monitoring system by the end of March of 2025. 

Stock short selling is a trading strategy in which investors sell stocks they borrowed on the belief that share prices will fall in the near future.