The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Senior US general warns of possible looming war with China

  • 3

    BLACKPINK sets 6 more Guinness records

  • 5

    Jang Keun-suk steps out of his comfort zone with 'The Bait'

  • 7

    ENA's new dating show to spotlight young adult's romance

  • 9

    Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities

  • 11

    Seoul to work with Hanoi to pursue peace on Korean peninsula

  • 13

    Korea's rice consumption hits another low in 2022: data

  • 15

    To speak Korean

  • 17

    SK E&S retains gov't support for Barossa gas project in Australia

  • 19

    Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event

  • 2

    People attempt to cut surging heating costs with creative solutions

  • 4

    National pension anticipated to be fully drained in 2055: NPS

  • 6

    TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride'

  • 8

    Bad weather disrupts operation of Jeju airport again after 3 days

  • 10

    More Korean manufacturers enjoy Georgia's hospitality

  • 12

    Superintendent of Seoul Education Office gets suspended jail term

  • 14

    Opposition leader Lee claims innocence in corruption probe

  • 16

    Police to build disaster prediction system to prevent recurrence of Itaewon tragedy

  • 18

    12 websites still unavailable after Chinese cyberattacks

  • 20

    LGES to capitalize on US IRA, Tesla partnership to continue record earnings

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Sun, January 29, 2023 | 15:16
Markets
Short-selling of Korean shares reaches peak since early pandemic
Posted : 2022-10-19 16:36
Updated : 2022-10-20 10:23
Lee Min-hyung
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Traders work in Hana Bank's dealing room in Seoul, Thursday, when the benchmark KOSPI closed at 2,237.44, down 0.56 percent from the previous day. Yonhap
Traders work in Hana Bank's dealing room in Seoul, Thursday, when the benchmark KOSPI closed at 2,237.44, down 0.56 percent from the previous day. Yonhap

Korea Exchange introduces toughened short-selling rules

By Lee Min-hyung

More investors have capitalized on the short-selling of Korean shares at the fastest pace since the early phase of the COVID-19 pandemic in March 2020, in what is seen by many as a sign of a further stock fall going forward.

According to data from the Korea Exchange, the portion of short-selling on the KOSPI 200 index reached 10.54 percent on average during the four trading days last week. The figure had not topped 10 percent since the beginning of the pandemic.

Investors bet on the additional stock fall of the major listed firms here, as the U.S. Federal Reserve is gesturing that it will stick to its ultra-hawkish monetary policy possibly until the end of 2022. Fears of recession are also increasing the likelihood for local stocks to suffer further losses.

Samsung Electronics topped the list of the most shorted shares here. Last month, investors' short-selling of the firm's shares amounted to 557.5 billion won ($390 million). Other large-cap stocks were also major targets for short-selling during the same period. LG Energy Solution came in second with 534.4 billion won, which was followed by 358.5 billion from SK hynix.

Market analysts expected Korean stocks to remain in the doldrums due to the unfavorable macroeconomic conditions here and abroad.

"Any near-term rebound of the benchmark KOSPI is unlikely, as the U.S. Consumer Price Index in September increased more than expected, which raised the possibility of the Fed's further rate hikes," Eugene Investment & Securities analyst Kang Song-chul said.

This means the Fed will further delay its timeline to end the ongoing cycle of monetary tightening, so the Korean stock market is forecast to face continuous downward pressure until there are any gestures of the Fed slowing down the pace of its rate hikes during the upcoming Federal Open Market Committee (FOMC) meeting in November, according to the analyst.

On Wednesday, the KOSPI closed at 2,237.44, down 0.56 percent from the previous trading day.

The securities firm forecasted the main bourse to slip further to as low as the 1,950-point mark amid lingering concerns over short-selling.

As those concerns grow, the Korea Exchange decided Wednesday to toughen rules on the trading practice.

Any stocks, whose portion of short-selling tops 30 percent or short-selling transaction volume doubles, will be designated as "overheated" shares from Oct. 24, according to the decision by the exchange operator.

When a stock's price drops by more than 5 percent on a day when its short-selling is banned, the transaction will be suspended until the next trading day, it said.

Financial authorities left open the possibility of putting a temporary ban on short-selling if the market keeps widening volatility.

"The Financial Services Commission (FSC) cannot say for sure whether we will take any specific actions on short-selling for the time being," FSC Chairman Kim Joo-hyun said during a recent audit session at the National Assembly.

Financial Supervisory Service Governor Lee Bok-hyun, however, hinted at the likelihood of suspending the trading practice, saying that "financial watchdogs can take any market stabilization measures in times when market participants' unrest has reached its peak."


Emailmhlee@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1People attempt to cut surging heating costs with creative solutions People attempt to cut surging heating costs with creative solutions
2Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities
3More Korean manufacturers enjoy Georgia's hospitality More Korean manufacturers enjoy Georgia's hospitality
4Seoul to work with Hanoi to pursue peace on Korean peninsula Seoul to work with Hanoi to pursue peace on Korean peninsula
5Superintendent of Seoul Education Office gets suspended jail term Superintendent of Seoul Education Office gets suspended jail term
6SK E&S retains gov't support for Barossa gas project in Australia SK E&S retains gov't support for Barossa gas project in Australia
7Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event
8LGES to capitalize on US IRA, Tesla partnership to continue record earnings LGES to capitalize on US IRA, Tesla partnership to continue record earnings
9Cambodian ministers highlight potential for growth, cooperation Cambodian ministers highlight potential for growth, cooperation
10KT&G aims to become global top-tier company KT&G aims to become global top-tier company
Top 5 Entertainment News
1BLACKPINK sets 6 more Guinness records BLACKPINK sets 6 more Guinness records
2Jang Keun-suk steps out of his comfort zone with 'The Bait' Jang Keun-suk steps out of his comfort zone with 'The Bait'
3TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride' TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride'
4ENA's new dating show to spotlight young adult's romance ENA's new dating show to spotlight young adult's romance
5Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

wooribank
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group