South Korea Short-Selling Holdings Decline 2.47 Trillion Won as of July 28

According to South Korea's Korea Exchange, short-selling net holdings on the KOSPI market fell to 18.09 trillion won as of July 23, down 2.47 trillion won (12.04%) from the month's start and 4.73 trillion won (20.73%) from the year-to-date peak on June 1. Stock lending balances also retreated, declining to 151.97 trillion won as of July 27 from 180.29 trillion won on July 1, a drop of 28.32 trillion won (15.71%), according to the Korea Financial Investment Association.

The decline reflects reduced bearish positioning as KOSPI fell past the 6,000 level. Analysts remain divided on whether this signals a market bottom: some view the correction as a cyclical adjustment with technical oversold conditions favoring a rebound, while others caution that without clear institutional or foreign buyer participation and with retail investor deposits shrinking to 106 trillion won from 140 trillion won in early June, sustained recovery momentum remains uncertain.