As South Korea’s benchmark KOSPI pushes toward the 7,000 mark, short-selling balances have climbed rapidly, adding to investor caution. Short positions have stayed above 20 trillion won for three consecutive trading sessions, holding near record levels.
According to the Korea Exchange on Monday, net short-selling balances in the KOSPI market totaled 20.1086 trillion won as of April 29. That was up 36.5% from 14.7313 trillion won at the end of March. The balance first topped 20 trillion won on April 27 at 20.5083 trillion won, then remained above that level on April 28 (20.3887 trillion won) and April 29. While slightly below the peak, it remains elevated.
As of April 29, Hyundai Motor had the largest net short position at 1.9531 trillion won. It was followed by Hanmi Semiconductor (1.9276 trillion won), HD Hyundai Heavy Industries (1.6839 trillion won), Mirae Asset Securities (936.6 billion won), POSCO Future M (758.7 billion won), Korea Aerospace Industries (537.2 billion won), Samyang Foods (453.4 billion won), Hanwha Systems (449.8 billion won), Daewoo Engineering & Construction (374.5 billion won) and Hyundai Engineering & Construction (334.2 billion won).
Short selling is a strategy in which investors borrow shares and sell them, then buy them back later to return the shares, aiming to profit if the price falls. A rise in short-selling balances is often read as reflecting expectations of a decline or increased hedging demand.
The latest surge is widely seen as a move to brace for a short-term pullback after the KOSPI’s steady rally. The index on the previous trading day rose above 6,800 intraday for the first time and climbed as high as 6,900, leaving it 63.01 points short of 7,000.
Still, brokerages have continued to emphasize further upside. Samsung Securities raised its year-end KOSPI ceiling to 8,400 points. Daishin Securities set a first-half target of 7,500, and Kiwoom Securities projected an upper range of 7,200 for this month.
Lee Kyung-min, a researcher at Daishin Securities, said valuation pressure remains limited even as the market hits fresh highs. He said the KOSPI’s 12-month forward price-to-earnings ratio stood at 7.12 as of April 30, “still in undervalued territory.” He added that 12-month forward earnings per share rose to 926.8 points at the end of April from 666.6 points at the end of March, and said that given upward revisions to earnings forecasts, “there is still ample room for further gains.”
* This article has been translated by AI.
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