HLB Pharmaceutical has been included among candidates for designation as a short-term overheated stock. If it meets all designation requirements going forward, single-price trading may be applied for three trading days.

According to a Korea Exchange disclosure, HLB Pharmaceutical will be subject to a short-term overheated stock designation notice on the 12th, pursuant to Article 23-2 of the KOSDAQ Market Business Regulations and Article 28-3 of the enforcement rules thereof.

Whether a stock is designated as a short-term overheated stock is determined based on whether it satisfies all three requirements—stock price increase rate, trading turnover ratio, and stock price volatility—within 10 trading days from the designation notice date.

The specific designation requirements are as follows. First, the day's closing price must be at least 130% of the average closing price over the previous 40 trading days. In addition, the average daily trading turnover ratio over the recent two trading days must be at least 600% of the average over the previous 40 trading days, and the average daily stock price volatility over the recent two trading days must also be at least 150% of the average over the previous 40 trading days.

If all of these requirements are met and the closing price on that day has risen above both the previous trading day's closing price and the closing price on the day before the designation notice date, the stock may be designated as a short-term overheated stock from the next trading day. Once designated, a single-price trading method, in which trades are executed every 30 minutes, will be applied for three trading days.

However, an exception rule also exists. Even if the designation requirements are met, a stock may be excluded from designation under the relevant regulations if it ranks within the top 100 by combined market capitalization of the KOSPI and KOSDAQ markets based on the previous trading day's closing price.

In addition, stocks designated as investment warning stocks or investment risk stocks are excluded from the short-term overheated stock designation procedure, including those scheduled for designation the following day, and the related designation requirements are not calculated.