Seven Companies Designated as "Short-Selling Overheated Stocks"
One-Day Ban on Short Selling, Including Dongseo and VT
Short selling transactions for seven listed companies, including Dongseo and VT, will be banned for one day on the 2nd.
On the 1st, the KOSPI index opened at 2,511.24 won, up 1.21% from the previous trading day, as dealers were working in the Hana Bank dealing room in Jung-gu, Seoul. On the same day, the USD/KRW exchange rate started trading at 1,473 won, up 0.1 won from the previous trading day. April 1, 2025. Photo by Kang Jin-hyung
The Korea Exchange announced on the 1st that it has designated seven domestic listed companies as short-selling overheated stocks and will ban short selling transactions for these companies on the 2nd.
Among KOSPI-listed companies, Dongseo was designated as a short-selling overheated stock.
Among KOSDAQ-listed companies, six companies?VT, ABL Bio, Comico, Taekwang, Taeseong, and Pharma Research?were designated as short-selling overheated stocks.
Among them, Taeseong's designation as a short-selling overheated stock was extended by one day.
The Korea Exchange designated Taeseong as a short-selling overheated stock on that day and banned short selling transactions.
If the stock price falls by more than 5% on the day the short selling ban is in effect, the ban period is extended by one day. Taeseong's stock price fell 7.27% compared to the previous close that day, resulting in a one-day extension of the short-selling overheated stock period.
Meanwhile, the financial authorities are strengthening and expanding the criteria for short-selling transaction amount increase rate and transaction amount ratio among the conditions for designating short-selling overheated stocks for two months until May 31, considering the possibility of increased volatility in some stocks after the resumption of short selling.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

