Kospi falls nearly 2% as Samsung, SK Hynix retreat

South Korea’s Kospi fell nearly 2% on Monday to about 8,255 points after declines in Samsung Electronics and SK Hynix, rising crude oil prices following an exchange of fire between the United States and Iran, and concerns over newly approved leveraged single‑stock ETFs.

Samsung and SK Hynix together account for more than half of the index. Both stocks had jumped earlier this month after strong results from a major US memory chip maker, which reported triple‑digit revenue growth and a gross margin above 80%.

Momentum cooled after Apple announced price increases for MacBooks and earlier for iPhones. Higher device prices prompted questions about potential effects on end‑user demand.

Retail borrowing has increased alongside the rally. Data show outstanding loans to individual investors in South Korea have risen to more than $11 billion, up more than 70% since December.

Regulators have approved leveraged single‑stock ETFs that magnify daily moves in individual shares. Prospective investors must complete hours of training and pass an eight‑question exam before buying these funds, which have attracted millions of dollars in assets this year. Gains and losses in these products are amplified.

Both Brent and West Texas Intermediate crude rose by more than 1% on Monday after the United States and Iran exchanged fire over the weekend, with each side accusing the other of breaching a ceasefire.

On technical charts, the Kospi peaked at 9,387 earlier this month and slid to around 8,276 intraday before finishing near 8,255. The index has retested the lower boundary of an upward‑sloping channel and remains above its 50‑day exponential moving average. The two lines of the MACD indicator have crossed to the downside and point downward.

Expectations for artificial‑intelligence adoption had raised demand forecasts for memory chips and helped drive the market earlier in the month. Strong results from global memory suppliers provided further support before recent price, geopolitical and product‑risk developments prompted a rotation away from some of the largest holdings.