(Bloomberg) -- South Korea’s government will seek a temporary ban on stock short-selling until regulations and systems related to the practice show “fundamental improvement,” according to a report by local media outlet Herald Business. 

The Financial Services Commission, the country’s top industry regulator, will prepare a detailed plan next week, followed by the government’s final plan that will be drawn up before Nov. 21, according to the Friday report, which didn’t cite anybody. 

Korea Economic Daily, citing an unidentified ruling party official, also reported Friday that a temporary ban will be announced as soon as next weekend. 

The regulator said no decision has been finalized. “A complete short-selling ban has not been confirmed,” the FSC said in a statement. 

Responding to retail investors’ demand, some ruling party lawmakers have called for a short-selling ban ahead of the general election in April. Retail investors have staged occasional protests in the country to criticize short selling, saying the practice leads to unfair advantages for foreign and institutional investors. 

Last week, the FSC denied a similar report by Maeil Business Newspaper that the government was seeking a temporary ban on short selling until the system is improved.  

Earlier this week, Kweon Seongdong, a lawmaker of ruling People Power Party, also called for a temporary ban and tougher penalty for illegal short selling. 

South Korea allows short-selling on equities listed in Kospi 200 and Kosdaq 150 indexes. It has maintained its pandemic-era ban on the practice on more than 2,000 stocks, which are mostly small-cap equities. 

Read: Korea Plans Wider Probe Into Stock Short-Selling by Global Banks

(Updates with additional reporting, FSC’s response in third paragraph)

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