The government has extended a ban on stock short-selling by six months. 

The Financial Services Commission(FSC) on Thursday announced the extension affecting all listed firms, including those on the Korea Composite Stock Price Index(KOSPI), until March 15. 

The prolongation of the temporary ban, which was put in place in March following the local indices’ freefalls amid the COVID-19 crisis, came after the markets sharply rebounded in recent weeks, regaining the ground it lost in the past few months. 

The financial watchdog said the new decision reflects concerns that a resurgence in COVID-19 could aggravate market volatility. 

Another stabilization measure announced in March, which raises the ceiling on local firms repurchasing their own shares, has also been extended by six months.