Dongsuh, VT, and six other listed companies have been designated as stocks subject to short-selling heat. Short-selling transactions for these companies will be prohibited for one day on the 2nd.

View of the Korea Exchange in Yeouido, Seoul./Courtesy of News1

The Korea Exchange announced on the 1st that it designated seven domestic listed companies as stocks subject to short-selling heat and that short-selling transactions for those companies would be prohibited on the 2nd.

Among KOSPI-listed companies, Dongsuh was designated as a stock subject to short-selling heat, while among KOSDAQ-listed companies, VT, ABL Bio, KoMiCo, TAE KWANG CORPORATION, Taesung, and PharmaResearch were designated as stocks subject to short-selling heat.

In the case of Taesung, the designation as a stock subject to short-selling heat was extended by one day. The Korea Exchange prohibited short-selling transactions for Taesung after designating it as a stock subject to short-selling heat on that day.

If the stock price falls by more than 5% on the day short-selling transactions are prohibited, the ban period is extended by one day. On that day, the price of Taesung fell by 7.27% compared to the previous close, resulting in the extension of the short-selling heat period by one day.

Meanwhile, financial authorities are strengthening and expanding the criteria for designating stocks subject to short-selling heat by increasing the growth rate of short-selling transaction amounts and the proportion of transaction amounts for two months until May 31, considering the possibility of increased volatility in some stocks after the resumption of short-selling.