Why is stock short selling rising even as the KOSPI and KOSDAQ rebound in Korea?

Investors are still wary after last month’s sharp drop in chipmakers and AI-related shares. The article says many remain uncertain whether the semiconductor sector has already peaked, despite the recent rebound.

How much short selling was outstanding in Korea on Tuesday, and how did it compare with earlier in the year?

Outstanding short selling stood at about 19 trillion won, up 14 percent from 16.73 trillion won at the end of last month. It had been 15 trillion won at the end of February, dropped to 12 trillion won in early March, and later rose to 23 trillion won in early June.

How have the KOSPI and KOSDAQ performed this month amid the short-selling increase?

The KOSPI has advanced 6 percent this month, while the tech-heavy KOSDAQ has jumped 20 percent. The article links the gains to a sharp rebound after last month’s market rout.

Stock short selling on rise despite market upturn

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Summary

Stock short selling in Korea has risen to about 19 trillion won as the stock market rebounded from last month’s chip and AI share rout. The Korea Composite Stock Price Index gained 6 percent this month, while the KOSDAQ rose 20 percent. Investors still worry that the semiconductor rally may have peaked.

Key Facts

Outstanding short selling reached about 19 trillion won as of Tuesday, up 14 percent, or 2.27 trillion won, from 16.73 trillion won at the end of last month.
Stock short selling was 15 trillion won at the end of February, fell to 12 trillion won in early March, and then rose to 23 trillion won in early June.
So far this month, the KOSPI advanced 6 percent and the KOSDAQ index climbed 20 percent.
The market had crashed last month amid concerns over the profitability of AI-related investment and possible weaker chip demand.

By Yonhap

Published Aug 16, 2026 9:58 am KST

Officials work at a dealing room of Hana Bank in Seoul, Thursday. Yonhap

Stock short selling has been on the rise despite the country's stock market sharply rebounding from a rout caused by a crash in chipmakers and artificial intelligence (AI)-related shares, data showed Sunday.

According to the data from the Korea Exchange (KRX), outstanding short selling reached some 19 trillion won ($13.4 billion) as of Tuesday, up 14 percent, or 2.27 trillion won, from 16.73 trillion won at the end of last month.

Stock short selling stood at 15 trillion won at the end of February but fell to 12 trillion won in early March. The figure rose to 23 trillion won in early June.

So far this month, the country's benchmark Korea Composite Stock Price Index (KOSPI) advanced 6 percent, and the secondary, tech-laden KOSDAQ index shot up 20 percent.

The country's stock market had crashed last month amid woes over the profitability of the AI-related investment, which may reduce demand for chips.

But investors remained worried over a sharp rise in a short period of time and are still uncertain whether the chipmaking sector has peaked.

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