EcoPro Hits 'Upper Limit' Amid Short-Selling Ban... "Long-Term Issues Expected"

Following the ruling party and government’s announcement on the 5th to implement a 'complete ban on short selling,' the stock market surged on the 6th. However, among economic experts, there are criticisms that "a complete ban on short selling is not good in the long term." In the political sphere, this ban is seen as the People Power Party’s winning card ahead of next year’s general election, while the opposition criticizes it, saying "only the ruling party benefits."

Kim Young-ik, an economics professor at Sogang University, pointed out on KBS's 'Choi Kang Sisa' that the ruling party and government’s complete ban on short selling "has positive effects in the short term but could cause problems in the long term."

On the 6th, when the temporary short-selling ban took effect, the KOSPI started with an upward trend, rising more than 50 points immediately after the market opened. Photo by Younghan Heo younghan@

Short selling is sometimes criticized by some investors as a 'tilted playing field,' but fundamentally, it is a system that helps find the appropriate value of companies. He said, "The best effect of short selling is that it helps find the appropriate value of companies," adding, "Recently, some secondary battery stocks have risen significantly, but through short selling, the stock prices could have gone through a process of finding their proper level."

Among the secondary battery stocks he mentioned, EcoPro recorded an intraday upper limit price (828,000 won) in the stock market this morning. EcoPro BM was trading at 293,500 won, just below the upper limit price (293,500 won) as of 11 a.m., and LG Energy Solution, POSCO Future M, and Kumyang also surged more than 20%.

The overall stock market is also on the rise. The KOSPI is up by over 3%, and the KOSDAQ is up by over 5%.

Professor Kim said, "Since our stock prices were undervalued, stocks could rise a bit more due to the short selling ban compared to if there was no ban," but he also added, "Why did such a comprehensive ban come out at this time? Generally, people think there might be some political motives behind it," interpreting that there could be political intentions ahead of the general election.

In the political sphere, the 'complete ban on short selling' implemented about 150 days before the general election is seen as politically motivated. Especially in the opposition, voices criticize that "only the People Power Party benefits." Park Yong-jin, a member of the Democratic Party of Korea, said on YTN's 'News King Park Ji-hoon' program, "We need to come up with fundamental measures instead of constantly applying temporary fixes," adding, "Their approach is like rushing to try everything that might be good before the general election, but that will eventually cause problems."

Choi Kang-wook, a Democratic Party lawmaker, criticized the government’s measure on his social media, saying, "Gimpo, sudden short selling ban, an unprepared prank," and "Citizens are seen by them as mere slaves to profit and desire."

However, within the broader ruling coalition, there are also evaluations that this card could shake up the general election landscape. Jo Won-jin, leader of the Our Republican Party, said on YTN radio, "(Short selling) was banned for about six months, and there are 14 million stock investors," adding, "The government and ruling party threw this card first. The Democratic Party can no longer defend itself."