Korea Slams Banks, Hedge Funds With Ban on Short Selling Ahead of Elections

(Bloomberg) — Short sellers are facing the heat in South Korea once again, with regulators reimposing a full ban on the practice of selling borrowed shares in a controversial move that’s come just months before general elections.

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While the decision is sure to please the legions of local retail investors who have repeatedly complained about the impact of short-selling on the nation’s $1.7 trillion equity market, it is raising alarm bells for global hedge funds and…