South Korean Stocks End Seven-Week Losing Streak with 11% Weekly Gain, but Institutional Positions Lag, Signaling Potential Short Squeeze?

This week, the KOSPI ended its seven-week losing streak, led by gains in chip stocks. However, hedge funds had previously significantly reduced their positions, and current institutional holdings clearly lag behind the index's rally. With foreign capital returning and tech stocks continuing to strengthen, low-positioned institutions face performance pressure and may be forced to chase gains, creating a positive feedback loop of "rising—covering positions." If the index continues to advance, this rebound could potentially evolve into a short squeeze.