On August 16, even though the stock market managed to rebound from the panic set off by the sharp decline in chip and artificial intelligence (AI) stocks, the magnitude of short selling kept on growing. According to data released by the Korea Exchange on Sunday, as of this past Tuesday, the outstanding short selling balance in South Korea's stock market stood at roughly KRW 19 trillion (approximately USD 13.4 billion). This marks an increase of KRW 2.27 trillion, or 14%, compared to the end of last month. Since the start of the year, the short selling balance has witnessed significant fluctuations. It was at KRW 15 trillion at the end of February, dipped to KRW 12 trillion in early March, and then soared to KRW 23 trillion in early June. So far this month, South Korea's benchmark KOSPI Index has climbed by 6%, while the technology-centric KOSDAQ Index has rocketed up by 20%. Last month, the South Korean stock market took a nosedive amid fears that weakening profitability of AI investments could dampen chip demand. At present, investors are still plagued by concerns over the rapid short-term gains and remain doubtful as to whether the chip industry has reached its peak.