[Disclosure] JUSUNG ENGINEERING (036930) Designated as Short-Selling Overheated Stock; Short-Selling Banned on Oct 10

Source: Financial Supervisory Service Dart System / 2025-10-02

Disclosure Type: Designation as Short-Selling Overheated Stock (Short-Selling Ban Applied)

💡 3-Second Summary

Following a sharp surge in short-selling transaction volume, the Korea Exchange (KRX) has designated JUSUNG ENGINEERING as an “overheated short-selling stock.” Consequently, all short-selling activities will be strictly prohibited during regular and after-hours trading sessions for one day on Friday, October 10, 2025.

📊 1. [Summary of Core Disclosure Content & Major Figures]

• Target Stock: JUSUNG ENGINEERING (Ticker: 036930 / ISIN: KR7036930006)
• Designated Date (Ban Applied): October 10, 2025 (Effective for 1 day)
• Enforcement Details: Short-selling is banned in both the regular market and after-hours trading on the designated date. (Trading resumes normal short-selling protocols from the next business day).
• Extension Clause: If the stock price drops by 5% or more on the day of the short-selling ban, the ban period may be extended.
• Exceptions: Short-selling is exceptionally permitted for liquidity providing (LP) quotes, market-making (MM) quotes, and hedging transactions intended for liquidity provision of ELW, ETF, and ETN products.

📈 2. [Expert Insight: Assessment of Impact on Stock Price]

• Short-term Impact (Potential Short-Squeeze/Short-Covering): This designation implies that bearish bets targeting a stock price decline have reached an abnormally high concentration. Since new short positions are blocked on October 10, the immediate downward price pressure will temporarily ease, potentially triggering a short-term rebound or an influx of short-covering (buying back shares to close out short positions).
• Mid-to-Long-term Fundamentals: The short-selling ban is merely a regulatory speed bump and not a structural catalyst that enhances the company’s earnings power or fundamental health. Conversely, it serves as a stark reminder that market sentiment and bearish outlooks on the stock have recently hit an extreme peak.
• Financial Viewpoint: Since a further decline of 5% or more on the ban date triggers an extension of the restriction, stabilizing investor sentiment on that day is crucial. Ultimately, once short-selling resumes, the stock price will converge back to its underlying financial metrics, such as semiconductor industry recovery trends and forward guidance revisions.

📝 Editor’s Comment (by K-STOCK Editor)

While this disclosure provides temporary breathing room for JUSUNG ENGINEERING shareholders, it is vital to maintain strict objectivity. Rushing into a position solely in anticipation of a “short-covering rally” due to the one-day ban can be highly risky. The fact that the exchange had to trigger this circuit-breaker means that the bearish assault on this stock has recently crossed a dangerous threshold. Investors should keep in mind that exception clauses still allow technical short-selling from LPs and market makers, and that the downside volatility remains wide enough that a 5% drop could prolong the ban. Rather than being blinded by the optical illusion of a one-day supply-demand vacuum, a sober approach is required to dissect why short balances swelled in the first place—focusing heavily on any potential pushbacks in equipment delivery schedules from primary semiconductor clients.

📢 Disclaimers and Source Information

Source: This content has been newly structured and written based on official data submitted to the Financial Supervisory Service’s Electronic Disclosure System (DART). Investment Risk Warning: This content is provided solely for informational and linguistic reference purposes. Under no circumstances does it constitute financial advice or a recommendation to buy/sell specific stocks. All investment decisions and financial responsibilities rest entirely with the investor. Inquiries: For compliance-related inquiries or copyright requests, please contact ksb220805@gmail.com.