Financial and securities shares surged after the government decided to keep the threshold for a major shareholder, subject to capital gains tax, at the current 5 billion won. As the government's determination to boost the stock market was reaffirmed, short-selling transactions also increased at the same time, with some betting on a pullback after the sharp run-up.
According to the Korea Exchange on the 16th, as of 15th, four of the top 10 stocks by short-selling transactions were financial and securities shares.
By short-selling volume, Hana Financial Group ranked second with 520,707, Woori Financial Group was third with 485,377, Mirae Asset Securities was fourth with 367,291, and BNK Financial Group was sixth with 313,072. Outside the top 10, NH Investment & Securities ranked 11th, SK Securities 17th, and Shinhan Financial Group 21st, showing that short-selling transactions are concentrated in financial and securities shares.
A similar pattern appears when looking at the short-selling share. Hana Financial Group reached 32.42%, topping 30% after DoubleU Games (32.76%). JB Financial Group was at 23.86%, BNK Financial Group 22.95%, Industrial Bank of Korea 20.1%, Woori Financial Group 17.94%, and Shinyoung Securities 16.87%, all showing high short-selling shares.
As financial and securities shares surged in a short period, demand for short selling appears to have increased. Financial and securities shares resumed a sharp rise after the government decided to keep the threshold for a major shareholder, subject to capital gains tax, at the current 5 billion won.
The KRX Securities Index, composed of major listed domestic securities companies, rose 16% from the end of last month, the highest gain among KRX stock indexes. Among individual stocks, Korea Investment Holdings, NH Investment & Securities, Kiwoom Securities, and BOOKOOK Securities climbed in the 10% range this month. The KRX300 Financial Index, calculated based on the top 300 corporations by sector, also rose 7.79% this month, showing the second-strongest gain after KRX300 information technology (11.15%).
Gu Yoon-chul, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, said, "Taking into account the public's desire to revitalize the capital market and the party's position that the major shareholder threshold should be maintained, we decided to keep the threshold at 5 billion won."
Still, some said the uptrend is excessively steep. They argued that easing the major shareholder threshold may be a short-term factor boosting share prices rather than a long-term policy positive. Investors with this view are concentrating short selling in financial and securities sectors that have surged, betting on the possibility of a correction.
An official at a financial investment firm said, "While easing the major shareholder threshold will be a positive for financial holding companies and securities firms, listed companies with a high proportion of shares held by major shareholders will benefit more directly," adding, "Rather than investing solely on the policy boost, investors should assess the likelihood of real benefits before investing."