Global Economy
Seoul Stock Market Plummets 9% as Memory Chip Giants Lose Ground
South Korea’s benchmark KOSPI index tumbled almost 9% on Monday, driven by sharp sell‑offs in the nation’s two memory‑chip leaders, Samsung Electronics and SK Hynix. The decline comes amid lingering doubts over inflated AI‑related valuations and follows a recent successful US IPO for SK Hynix that failed to protect its share price.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
South Korean Market Takes a Sharp Dive
The KOSPI benchmark slid 8.95%, closing at 6,807 points, after a steep drop in SK Hynix shares. The semiconductor heavyweight lost roughly one‑third of its market value in less than three weeks, despite a celebratory IPO on Wall Street last Friday.
Samsung Electronics, the other memory‑chip titan, also saw its stock slide, adding to the broader sell‑off across tech‑heavyweights. Investors remain wary as the AI boom continues to push valuation multiples to historically high levels, raising concerns about sustainability.
Global Context
Asian equity markets were broadly down, with South Korea leading the decline. The sharp correction reflects both sector‑specific pressures on memory‑chip manufacturers and broader macro‑economic uncertainty surrounding AI‑related hype.
Analysts note that while the AI narrative offers growth potential, the current price spikes may be untenable, especially for companies whose earnings are still catching up with the hype.