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Short selling amounts to $4.38B in 1st week of resumption

Published: 06 Apr. 2025, 16:04

The Hana Bank trading room in Seoul on March 31 [YONHAP]

Short selling in Korea amounted to 6.4 trillion won ($4.38 billion) in the first week after a more than a yearlong ban was lifted, the bourse operator said Sunday.

Last Monday, short selling was allowed for all listed firms following a suspension imposed in November 2023 after a series of naked short-selling violations involving several global investment banks was discovered.

According to the Korea Exchange, short selling on the main Kospi and secondary Kosdaq markets averaged 1.28 trillion won per day, totaling 6.4 trillion won for the week.

The weekly figure marked a sharp rise from the daily average of 788.4 billion won tallied during a month just before the country banned the trading practice.

Foreign investors accounted for 90 percent of such trades on the main Kospi, while institutional investors took up 9 percent.

Last week, the Kospi fell 3.62 percent to close at 2,465.42 on Friday, and the tech-laden Kosdaq also suffered a 0.92 percent drop to finish at 687.39.

Foreigners sold a net 5.86 trillion won over the week, marking the largest weekly net selloff since August 2021.

Yonhap