Short selling in Samsung Electronics reached 1.02 trillion won ($734 million), or 8.81% of turnover, on the 24th as the company began buying back shares. The Korea Exchange said the ratio was 3.3 times Samsung’s 2.70% daily average this year and the stock’s fourth-highest reading of the year; it remained elevated at 4.46% on the 25th. Analysts said the activity reflected disappointment that Samsung’s purchases were intended for employee bonus payments and were not accompanied by a cancellation plan, while its shareholder return program centers on dividends. Short selling across the KOSPI averaged 4.11% of daily turnover this year but rose to 5.20% in August, exceeding the previous annual high of 4.87% in March. The ratio stayed above 6% for two sessions, reaching 6.21% on the 24th and 6.03% on the 25th, indicating increased bets on further declines. SK hynix also recorded elevated short selling despite praise for a buyback and cancellation plan worth about 40 trillion won ($28.8 billion). Margin loan balances, a form of leveraged stock borrowing, rose by more than 5 trillion won to 32.63 trillion won from 27.40 trillion won on the 4th, according to the Korea Financial Investment Association. A securities industry official warned that external volatility around events such as the Jackson Hole meeting could combine with high short selling and forced sales caused by collateral shortfalls to intensify downward pressure on the index.