Short sellers caught off guard by KOSPI’s 5,000-point breakthrough
Heo, an office worker in Seoul, watched his losses mount after short-selling Samsung Electronics stocks starting in the middle of last year on expectations of an earnings slowdown. The 38-year-old built his short position at an average price of 142,000 won ($98), but as the stock climbed past the 150,000-won level, he was asked to post additional margins and ultimately closed the position earlier this month, locking in his losses. “I expected a short-term correction, but I didn’t anticipate the index rising this quickly,” Heo said. “As the stock price rose, my losses grew, which was psychologically very stressful.” Short selling involves borrowing shares and selling them first, then buying them back later at a lower price to return them to the lender. As the benchmark KOSPI has surged past the 5,000-point mark amid a historic rally, losses have widened for investors who bet on falling share prices. According to the Korea Exchange Sunday, eight of the 10 KOSPI-listed stocks with the highest short selling ratios this year were trading above their average short selling prices as o
Jan 25, 2026By Jun Ji-hye
