Stock short selling on rise despite market upturn

Recent data from the Korea Exchange reveals a growing trend in stock short selling despite a significant recovery in the country's stock market. As of Tuesday, outstanding short selling reached 19 trillion won, a 14% increase, or 2.27 trillion won, from the previous month's 16.73 trillion won. This surge in short selling occurred after the market had rebounded from a severe downturn caused by a sharp decline in chipmakers and AI-related shares.

The rise in short selling follows a dramatic decrease from 15 trillion won at the end of February to 12 trillion won in early March, but it rebounded to 23 trillion won in early June. Meanwhile, the Korea Composite Stock Price Index (KOSPI) has climbed 6% this month, while the tech-heavy KOSDAQ index has risen by 20%. Despite the market's recent gains, investors remain concerned over the rapid rise in short selling and are uncertain whether the chipmaking sector has peaked.