Kospi tumbles 7% as Samsung, SK Hynix slide

The Kospi Composite Index plunged about 7% to 7,733 in the trading session as shares of Samsung Electronics and SK Hynix tumbled, dragging South Korea’s main stock gauge sharply lower.

Samsung Electronics fell 5.56% and SK Hynix declined 7.30%. SK Square, a major SK Hynix shareholder, dropped more than 4%. Memory and semiconductor stocks led the weakness after traders pointed to reports that Apple sought U.S. approval to buy chips manufactured in China. Apple recently confirmed plans to raise MacBook prices.

Investors also reacted to reports that Meta Platforms is considering selling spare data-center capacity. Market participants flagged that additional available capacity could affect demand for servers and memory. Separately, several PC makers have filed a lawsuit in the United States alleging that memory suppliers conspired to inflate prices.

Outstanding margin loans among domestic investors have climbed past $11 billion, according to market data, and traders warned that high leverage can lead to rapid selling when sentiment turns. The market’s recent gains were concentrated in a few large names, and declines in Samsung and SK Hynix had an outsized effect on the benchmark.

Technical indicators showed the Kospi fell below the lower edge of an ascending channel that had connected lows since May 20, slipped under the 25-day moving average and moved below the Strong Pivot Reverse level on the Murrey Math Lines tool. Some analysts cited 7,000 as the next area of support based on recent trading ranges; others pointed out that the index’s year high of 9,387 remains a reference point for longer-term recovery scenarios.

Trading was volatile across the session as semiconductor leaders posted rapid losses and other sectors showed mixed performance.