As the Korean Composite Stock Price Index (KOSPI) surged sharply this year, large-cap stocks with high market capitalization, led by SK Hynix, have consecutively been designated as investment warning stocks. The inclusion of major large-cap stocks (rather than small and medium-sized theme stocks) on the warning list is considered unusual.
According to the Korea Exchange, as of December 11, SK Hynix and SK Square have been designated as investment warning stocks. The stock prices of the two companies have increased by 244% and 314%, respectively, compared to a year ago. This, along with factors such as reaching the highest closing prices within the last 15 trading days, forms the basis for the warning designation. Investment warning is an intermediate stage of the market alert system, applied when there are concerns about unfair trading such as sudden stock price surges or large-scale buying and selling by a few accounts.
This designation is not merely a warning. Once classified as an investment warning stock, credit financing purchases will be restricted, and if the stock price continues to surge further, trading suspension measures may be triggered. If it becomes