Chip stock rebound fails to dispel concerns, short selling in Korea market continues to climb

Odaily News Despite the stock market's significant rebound from the panic triggered by the sell-off in chip stocks and AI-related stocks, data shows that short selling volumes are still on the rise. According to data released by the Korea Exchange on Sunday, as of Tuesday this week, the outstanding short balance on the Korean stock market stood at approximately 19 trillion Korean won (about $13.4 billion), an increase of 2.27 trillion Korean won from 16.73 trillion Korean won at the end of last month, representing a growth of 14%. At the end of February this year, the short balance was 15 trillion Korean won, briefly dropping to 12 trillion Korean won in early March, before rising to 23 trillion Korean won in early June.

So far this month, the benchmark KOSPI index has risen 6%, while the tech-heavy KOSDAQ index has surged 20%. Last month, the Korean stock market experienced a sharp sell-off due to concerns over the profitability of AI-related investments, which could weaken chip demand. However, investors remain concerned that the recent gains have been too rapid, while uncertainty persists over whether the chip industry has reached its peak. (Jin Shi)