Samsung and SK hynix shares plunge in their steepest weekly fall since 2008
Shares of Samsung Electronics and SK hynix dropped sharply this week, marking their biggest weekly declines since the global financial crisis of 2008.
Samsung Electronics and SK hynix experienced their sharpest weekly share declines since the 2008 financial crisis, with Samsung down 17.8% and SK hynix down 24.3% over the past week, according to the Korea Exchange. Foreign investors led the retreat, dumping a net 11.21 trillion won of Kospi-listed equities, of which Samsung and SK hynix represented 78.8% of the total. This foreign selling pushed the foreign ownership of Samsung to its lowest level since July 2009 and that of SK hynix to its lowest since December 2021.
Analysts linked the slide to heightened concerns over U.S. rate outlook, doubts about returns on massive AI investments, and intensifying competition from Chinese memory chip producers such as ChangXin Memory Technologies. In addition, uncertainty surrounds a potential U.S. listing of SK hynix’s NAND flash unit Solidigm, which could affect the parent’s valuation. Park Jae-hwan of Eugene Investment & Securities warned that the unfavorable macro environment could keep market volatility high.
Why it matters
The rout highlights mounting pressure on South Korea's leading chip makers from global economic and competitive forces.
How this story developed
- Oct 13 Asian markets tumble as US chip slump drags South Korean shares below 3%
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 16 MSCI announced a consultation to downgrade Indonesia from emerging-market to standalone-market status, citing ongoing issues with ownership transparency and market governance.
- Oct 16 CoreWeave rebounded 6% after a steep decline, lifting broader semiconductor shares.
- Oct 16 MSCI announced a consultation to consider reclassifying Indonesia as a standalone market.
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