Shares in SK Hynix settled lower by 15.4% on the Korea Exchange on Monday, posting its largest single-day fall on record and driving a broad market decline in South Korea with the share price of its competitor, Samsung Electronics, also fell sharply, losing 10.70%
The dramatic pullback followed a prolonged rally in the stock and came on the heels of its high-profile listing on the Nasdaq, where its American Depository Receipts (ADRs) jumped 12.8% in their debut, raising approximately $26.5 billion. This listing set a new fundraising record, surpassing Alibaba’s initial public offering from over ten years ago.
Widespread declines in these two major equities pulled the Kospi index close to 9% lower by the close after a circuit breaker was triggered for the seventh time in 2026, suspending trade for 20 minutes.
Monday’s selling was not limited to South Korea, as markets across Asia experienced losses, influenced by renewed Middle East tensions and investor concerns about whether recent gains in AI-linked stocks were justified by underlying fundamentals.
In response to the greater fiscal receipts generated by the country’s semiconductor industry upswing, the South Korean government is planning a future fund. This fund, financed with the additional tax revenue from the chip sector’s growth, is set to back new technological drivers, provide support for younger generations, and fund measures to address rising inequality.
