The South Korean stock market is recovering, yet the scale of short selling is increasing rather than decreasing.

Data released on Sunday shows that although the South Korean stock market has significantly rebounded from the crash triggered by the sharp decline in chip and AI-related stocks, the scale of short selling in the market continues to rise. According to data from the Korea Exchange, as of this Tuesday, the amount of uncovered short positions was approximately 19 trillion won, an increase of 2.27 trillion won compared to 16.73 trillion won at the end of last month, representing a growth of 14%. By the end of February, the short selling scale in South Korea was 15 trillion won, which fell to 12 trillion won in early March and surged to 23 trillion won by early June. So far this month, the South Korean Composite Stock Price Index has risen by 6%, while the tech-heavy KOSDAQ Index has jumped by 20%. Last month, concerns arose in the market regarding the deteriorating profitability outlook for AI-related investments and the potential shrinkage in chip demand, leading to a significant drop in the South Korean stock market. However, investors are wary of the current rapid short-term increase and remain uncertain about whether the chip industry has reached its peak.