South Korea has decided to tighten regulations on stock short selling to deal with increasing market volatility amid the outbreak of the novel coronavirus. 

Finance Minister Hong Nam-ki said on Tuesday that over the next three months, the government will ease its requirements for the designation of certain shares subject to a possible ban on short selling.

Under the temporary measure, financial authorities will designate overheated stocks at market close to prohibit short selling during the next day's trading session.

The Financial Services Commission plans to release details of the measure on Tuesday after the local stock market closes.
 
The move follows the local market recently suffering heavy losses possibly caused by massive short-selling by foreigners and institutions that apparently expect additional drops in stock prices.   

South Korea temporarily banned short selling during the global financial crisis in 2008 and 2011.