South Korea stock short selling rises amid market rebound

Stock short selling in South Korea is increasing despite a significant rebound in the nation's stock market. Data from the Korea Exchange (KRX) shows that outstanding short selling reached approximately 19 trillion won (US$13.4 billion) as of Tuesday, representing a 14 percent increase from the end of last month.

This rise in short selling occurs even as the benchmark KOSPI index has advanced 6 percent this month and the tech-focused KOSDAQ index has surged 20 percent. The market recently recovered from a downturn caused by concerns regarding the profitability of artificial intelligence investments and their impact on chip demand.

Investors appear to be weighing the recent market gains against uncertainties regarding whether the chipmaking sector has reached its peak. While major chipmaker shares have seen recent buying interest, the increase in short positions suggests ongoing caution regarding the speed of the market's recovery.