On the 27th, the Korea Exchange announced that the number of market alerts designated in 2024 totaled 2,756, an increase of about 4% from 2023. By stage of market alert, there were 2,473 cases of investment caution, 241 investment warnings, 10 investment risks, and 32 trading suspensions.
Measures for investment caution and investment warnings increased by 5% and 8%, respectively, compared to 2023. The exchange cited the increase in management disputes and treasury stock acquisitions, along with frequent short-term (5-day) surges, as factors.
Among the market alerts, 32% (868 cases) were related to thematic stocks. The proportion of market alerts for political thematic stocks was 21% (86 cases) and for semiconductor thematic stocks was 21% (180 cases), indicating a high designation rate. The percentage of market alerts for coronavirus-related thematic stocks was 16% (136 cases) as COVID-19 temporarily resurged.
To respond to the overheating of thematic stocks, the exchange requested 116 instances of market fluctuation inquiries. This was a 25% increase from 2023. Regarding these inquiries, 75% (87 cases) of the responses from listed companies indicated "no important disclosures."
A representative from the exchange noted, "There were many instances where listed companies found it difficult to explain fluctuations in stock prices due to the thematic stock craze amid the absence of important information to disclose internally."
The exchange stated that there was an effect of mitigating stock price rises after market alerts were designated. For example, the rise in stock prices for political thematic stocks dropped sharply from 106.7% to -5.9% after the investment warning measures.
The exchange also explained that following the designation of market alerts for short-term (3-day) surging stocks, speculative trading significantly decreased. It established a new investment warning system for unhealthy long-term upward trends to complement the short-term surge-based market alert measures.
The Exchange Market Surveillance Committee stated that it will effectively operate the market alert designation and market fluctuation inquiry system this year as well. A representative from the exchange noted, "We will strive to prevent unfair transactions and protect investors."