The financial regulator announced on Monday its intention to create a real-time monitoring system for naked stock short selling by March next year. This plan is being developed in response to the ongoing ban on stock short selling, which was initially scheduled to end at the close of this month. The Financial Supervisory Service (FSS) emphasized the need for a significant amount of time to establish a centralized naked short selling monitoring system and an effective algorithm to identify illegal stock short selling. The FSS aims to expedite the development of a naked short selling detection system within 10 months, by March next year. The FSS has refrained from specifying when the temporary ban on stock short selling will be lifted, but it is widely anticipated to occur after March, once the real-time detection system is in place. The presidential office has also indicated that the ban will persist until a "credible" system is established and operational. The temporary ban on stock short selling was implemented by Seoul in November following the exposure of extensive illegal short selling activities at two global investment banks in South Korea. The FSS has conducted inspections of 14 major investment banks in the country and identified suspected cases of naked stock short selling at nine of them as of early last month. FSS chief Lee Bok-hyun emphasized that the efforts to enhance the stock short selling system are part of broader initiatives to elevate the country's capital market and bolster investor confidence. The FSS has outlined that the plan will encompass real-time monitoring of stock short selling and the automatic rejection of short selling orders in cases where the trader lacks sufficient balance.