Shares of SK Hynix fell more than 10% in early trading sessions, erasing gains from the previous session and marking their steepest decline this year. The selloff was led by profit-taking activity and heightened investor caution as concerns mounted over the sustainability of demand for artificial intelligence-related products.
Other major semiconductor stocks faced similar pressures: Samsung Electronics dropped by more than 8%, Seoul Semiconductor declined over 5%, while Samsung SDI retreated over 2%.
The broader Kospi index registered a steep loss, plunging more than 6% in morning trading. The downturn in South Korea’s equity market mirrored declines overnight in U.S. chip shares, amplifying pessimism across the technology sector.
In the U.S., major indexes posted gains during Wednesday’s session. The Dow Jones Industrial Average increased 0.3% to 52,659.18, the S&P 500 added 0.4% to 7,572.43, and the Nasdaq Composite rose 0.6%, closing at 26,269.23. However, Micron Technology plunged 8%, Intel fell 4% and Advanced Micro Devices dropped 3%.
Meanwhile, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75% on Thursday, marking its first increase since January 2023. The decision, which matched economists’ median projections, was driven by persistent inflation, with the consumer price index rising to 3.2% in June—the fastest annual pace since last year.
The elevated rates come as policymakers seek to address increasing inflationary pressures, adding further uncertainty for the nation’s technology and export-focused equities.
