Kospi Drops 7% as Samsung and SK Hynix Slide 10% in Chip Selloff
Updated
Updated · Business Insider · Jul 2
Kospi Drops 7% as Samsung and SK Hynix Slide 10% in Chip Selloff
3 articles · Updated · Business Insider · Jul 2
Summary
South Korea’s benchmark index swung sharply lower Thursday, falling as much as 7% while Samsung Electronics and SK Hynix each dropped about 10% before trimming losses.
An overnight rout in U.S. semiconductor shares and profit-taking after a huge AI-driven rally drove the selloff, with analysts noting SK Hynix is still up more than 200% this year.
Japan was hit as well: Kioxia sank more than 15%, pulling the Nikkei 225 down over 2% and extending the regional fallout from the chip retreat.
The drop came despite still-strong memory demand and Morningstar raising fair value estimates for Samsung and SK Hynix, though investors are increasingly focused on how long favorable pricing can last.
Analysts expect volatility to stay elevated ahead of Thursday’s U.S. payrolls report, while a projected supply surge over the next two years could set up a memory downturn in 2029 and 2030.