Stock short selling on rise despite market upturn

Despite the Korean stock market rebounding strongly, short selling of stocks is on the rise, according to data from the Korea Exchange. As of Tuesday, the total outstanding short selling reached 19 trillion won, a 14% increase or 2.27 trillion won from the end of last month. The figure had dropped to 12 trillion won at the beginning of March but surged to a peak of 23 trillion won in early June.

The Korea Composite Stock Price Index (KOSPI) has advanced 6% so far this month, while the tech-heavy KOSDAQ index surged 20%. However, investors remain concerned about the rapid increase in stock prices over a short period and question whether the sector that produced AI-related investments and chips has reached its peak.