As of 9:05 AM on the 31st, the KOSPI has dropped by 56.33 points (2.20%) from the previous trading day to 2,501.65, and the KOSDAQ has decreased by 15.18 points (2.19%) from the previous day to 678.58, according to News1.
On the first day of the resumption of short selling, the domestic stock market opened with a significant decline. This is interpreted as a result of growing concerns ahead of the announcement of reciprocal tariffs by the United States, combined with anxiety over the resumption of short selling.
At 9:30 AM, the KOSPI fell sharply by 2.41% to 2,496.34, and the KOSDAQ index decreased by 2.34% to 677.50. This marks the first time the KOSPI has fallen below the 2,500 level during the trading day since the 10th of last month.
Although many expected an increase in foreign investment following the resumption of short selling, there has yet to be an evident effect, as foreigners are net selling over 270 billion won. Meanwhile, individual and institutional investors are currently net buying 225 billion won and 32.6 billion won, respectively. Kim Dae-jun, a researcher at Korea Investment & Securities, stated, “Once short selling commences, stock price volatility could rapidly increase,” and added, “Stocks with a rapid increase in loan balances may destabilize, causing the index to lose its direction.”
Stocks with an increased loan balance, considered a leading indicator of short selling, are displaying a significant downward trend. For instance, POSCO Future M and L&F are down by 7%, while Yuhan Corporation is showing a decline of over 4%. Among the major stocks by market capitalization, LG Energy Solution has plummeted by more than 5%, and Samsung Electronics, SK Hynix, Samsung Biologics, Hyundai Motor, Kia, and Naver are recording declines of over 2%.
The Japanese stock market is also experiencing a sharp decline. The Nikkei average, Japan’s benchmark index, is fluctuating around 35,836, down approximately 3.5% from the previous trading day. Although the Chinese-speaking markets have not yet opened, the Hang Seng Index futures in Hong Kong are currently down by over 1%.