Korean Chip Stocks Retreat Monday, Samsung and SK Hynix Each Drop ~9%
N.R. Finch
Samsung Electronics and SK Hynix each fell about 9% in Monday's early session, surrendering much of Friday's record single-day surge; foreign investors net-sold over ₩1 trillion of KOSPI stocks, as leverage unwind and short-covering exhaustion collided.
Up 30% Friday, down 9% Monday — what happened?
KOSPI surged 18% last Friday — the largest single-day gain in Korean market history. Samsung jumped 27%, SK Hynix 30%, each an all-time record.
On Monday, both stocks dropped roughly 9%; KOSPI fell as much as 5.5% in early trading.
This means → Friday's rally was not driven by fundamentals but by a concentrated burst of short covering — bearish bets being forcibly closed — and once that wave passed, prices fell back.
Who was selling, and why?
Monday's sell-off was led by foreign investors, who net-sold over ₩1 trillion (~$698 million) of KOSPI constituents in the morning session — a sharp reversal of Friday's buying.
Lombard Odier strategist Homin Lee noted that a stronger won and reports of Chinese progress in AI and semiconductors added further downward pressure.
In plain terms = the same pool of global capital that rushed in Friday to close short positions turned around Monday to lock in profits.
What is the bigger picture?
Before Friday's spike, KOSPI had fallen 17% over three trading days, driven by violent swings in AI-related names.
This reflects a market where Korean chip stocks are being moved by leveraged flows and event-driven trading, not by earnings expectations.
The central question now: under the twin pressures of leverage unwind and external uncertainty, can Korean chip stocks find a new floor?
Content is for reference only, not financial advice.