The Korea Exchange designated 45 companies listed on the KOSPI and KOSDAQ markets as short-selling overheated stocks. This is the highest number designated since the full resumption of short selling. This appears to be a result of the impact of the Donald Trump administration's enforcement of universal and reciprocal tariffs, which significantly shook the domestic stock market.
The Korea Exchange designated 22 companies listed on the KOSPI market and 23 companies listed on the KOSDAQ market as short-selling overheated stocks on the 7th. Stocks with a significant increase in short selling and a large drop in share prices can be designated as short-selling overheated stocks, allowing for limitations on short selling the following day.
Among the stocks in the KOSPI market, HD Hyundai Heavy Industries, CJ, LS, S-Oil, Doosan, ISU PETASYS, Meriz Financial Group, Mirae Asset Securities, Hana Financial Group, and NH Investment & Securities were named as short-selling overheated stocks.
In the KOSDAQ market, HLB PHARMA, LS Marine Solution, VT, Enchem, Oriental Precision & Engineering, Cheryong Electric, and HANCOM were designated as short-selling overheated stocks.
The number of short-selling overheated stocks was 43 on March 31 → 7 on April 1 → 22 on April 2 → 11 on April 3 → 15 on April 4, etc. The highest was 45.
While the financial authorities are expanding the designation system for short-selling overheated stocks until May, more stocks than expected are being designated as short-selling overheated stocks. The financial authorities initially predicted that the number of short-selling designations for this month would be 35.9 for the KOSPI market and 112.3 for the KOSDAQ index based on simulations. However, as of that day, the KOSPI market exceeded the expected number with 48 designations, and the KOSDAQ market is approaching the expected figure with 95 designations.
This is because the domestic stock market plummeted along with the resumption of short-selling transactions impacted by tariffs. The KOSPI index has dropped 9% and the KOSDAQ index 6.1% since the resumption of short selling.