셀포터즈 강성주
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3 months ago
SK Innovation Tops Short-Selling List — Why Are Foreign Investors Targeting This Stock First? (Apr 9, 2025)
On March 31, 2025, South Korea fully resumed short-selling after a 17-month suspension. Expectations for foreign capital inflows were unmet—instead, the market was met with a wave of aggressive selling.At the center of that wave is SK Innovation (096770).According to data from the Korea Exchange as of April 9, foreign investors have offloaded a net KRW 9.67 trillion (approx. USD 6.7 billion) in Korean equities between March 31 and April 8. During that same period, total short-selling turnover amounted to KRW 8.26 trillion (approx. USD 5.7 billion)—with foreigners accounting for a staggering 87.8% (KRW 7.26 trillion (approx. USD 5.0 billion)).Amid this selloff, SK Innovation stood out as the most heavily targeted stock.As of April 9, short-selling made up 48.19% of total trading volume in SK Innovation—ranking No. 1 on the KOSPI. That means nearly one out of every two shares traded was a short sale. On March 31, the first day short-selling resumed, SK Innovation ranked among the top 50 shorted stocks. By April 3, its short-sell ratio had soared to 52.31%, again taking the top spot.In short, SK Innovation has become the first and most concentrated large-cap short target in this new market environment.The stock’s price action reflects this pressure.From KRW 122,000 (approx. USD 90) at the end of March, SK Innovation’s stock fell to KRW 92,700 (approx. USD 68) by April 9, dropping 24% in just seven trading days. Compared to its recent peak of KRW 140,200 (approx. USD 104) on March 13, the decline is even steeper at 34%. While some suggest the sharp pullback may offer a technical rebound, the market is focused on a more fundamental question:Why did foreign investors choose SK Innovation first?The answer lies in one phrase: structural uncertainty.SK Innovation’s business is built on two pillars: oil refining (SK Energy) and EV batteries (SK On). Right now, both pillars are under strain.The refining division is facing dual headwinds—declining oil prices and falling refining margins. As fears of a global recession deepen amid escalating trade tensions, international oil prices dropped to their lowest level in four years on April 8, eroding the segment’s profitability outlook.But the more serious concern is the battery division.SK Innovation operates its EV battery business through SK On, and the first quarter of 2025 shows no signs of improvement. In an April 3 report, Samsung Securities projected SK Innovation’s Q1 operating profit at KRW 29.1 billion (approx. USD 20 million), a massive 93% below the market consensus of KRW 417.4 billion (approx. USD 305 million).This underscores a broader issue: the combined structure of refining and battery operations may be fundamentally incapable of generating profit under current conditions.Add to this a layer of policy risk. Recent tariff shocks from the U.S. have hit Korean markets hard, particularly in high-growth sectors like batteries, electrical equipment, and shipbuilding. SK Innovation sits at the intersection of these sectors, making it a prime short-selling target.As of April 8, short-selling still accounted for 38.04% of total trading volume in SK Innovation. On the same day, major peers like LG Energy Solution, SK Ecoplant Materials, and POSCO Future M also ranked high on short-interest lists.In short, SK Innovation is currently surrounded by a confluence of risks—earnings weakness, industry headwinds, policy uncertainty, and negative sentiment.Still, it may be premature to adopt a purely bearish view. Short-selling is often followed by overreaction and eventual reversal. If the company reaches break-even in key areas sooner than expected, a re-rating could follow.Ultimately, what SK Innovation needs now is not sentiment—but numbers and results to support a turnaround.[Compliance Note]All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.
