Korea: Short Selling Data Analysis (Which Stocks Are the Gainers and the Losers?)

• We provide the short selling data analysis of the Korean stock market including the top 20 stocks in KOSPI with the highest short interest ratios in KOSPI and KOSDAQ, respectively.

• There have been noticeable shorting on the Ecopro Group companies and other key names in the rechargeable battery sector including Posco Future M, L&F, and SK IE Technology.

• Shorting has generally worked for KOSDAQ names with higher short interest ratios but not for KOSPI names in the past two weeks.

Key Highlights from the Short Selling Data in Korea

The following are the key data points on the short selling data in Korea.

• Noticeable shorting on the Ecopro Group companies - Three Ecopro Group companies including Ecopro Co Ltd (086520 KS),Ecopro BM (247540 KS), and Ecopro HN (383310 KS) are among the top 20 stocks in KOSDAQ with the highest short interest ratios. Ecopro Group is one of the leaders in the Korea rechargeable battery sector. Despite the increasing possibility of Lee Jae-Myung (Democratic Party) winning the next Presidential election (which could positively impact the renewable energy/rechargeable battery sectors), many investors are concerned about the continued weakening demand for EVs globally.

• Shorting has generally worked for KOSDAQ names with higher short interest ratios but not for KOSPI names - The top 20 stocks in KOSDAQ with the highest short interest ratios are down on average 6.3% in the past two weeks. On the other hand, the top 20 stocks in KOSPI with the highest short interest ratios are down only 1.9% in the past two weeks.

• Rechargeable battery sector appears to be the most heavily shorted sector - More than 10 companies (among the 40 stocks with the highest short interest ratios in KOSPI and KOSDAQ) compete in the rechargeable battery sector. While Ecopro Group companies are heavily shorted in KOSDAQ, some of the rechargeable battery names such as Posco Future M (003670 KS), L&F (066970 KS), and SK IE Technology (361610 KS) are on the top ranking list among the heavily shorted stocks. All in all, despite the sharp decline in the rechargeable battery sector in the past 2-3 years, some investors thank that some of the key names in this sector have further downside risk.