What it is
A short seller borrows shares, sells them, and later buys them back — ideally cheaper — to return them. Korea allows only covered (borrowed) short selling; naked short selling is illegal.
Rules in Korea
Korea banned short selling across the market from November 2023 and, after building a monitoring system for illegal shorting, resumed it for all stocks on March 31, 2025. Retail investors can short through broker stock-lending services.
What to keep in mind
A high short balance means many bets on a decline. When prices rise, short sellers buying back to cut losses (short covering) can push prices higher still.
This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.