SEOUL — Shares of Samsung Electronics and SK Hynix fell more than 12% in Tuesday trading, leading a sharp decline in South Korean technology stocks as the broader market suffered a major sell-off. The two semiconductor companies, among South Korea’s largest listed firms, were among the biggest contributors to the drop in the benchmark KOSPI index, which fell nearly 10% during the session, according to market data reported by Reuters and other financial news outlets.
Samsung Electronics shares declined about 12% and SK Hynix shares also dropped more than 12% on Tuesday, according to market data cited by financial reports. The decline came after investors sold major semiconductor stocks amid a wider technology-sector sell-off that affected markets in Asia and followed weakness in U.S. technology shares.
The KOSPI closed sharply lower on Tuesday, with Reuters reporting that the index recorded one of its steepest recent declines after foreign investors sold shares of major chip companies. The report said regulators had raised concerns about risks linked to leveraged exchange-traded products tied to South Korean stocks, adding to market volatility.
Samsung Electronics and SK Hynix are major global suppliers of memory semiconductors, including products used in artificial intelligence-related computing systems. Their shares had gained strongly earlier in the year as demand for advanced chips supported the sector, but the companies were affected by the broader technology market retreat on Tuesday.
South Korean financial authorities had warned about market risks connected to leveraged investment products, Reuters reported. The regulator’s comments came as concerns grew over heavy concentration in semiconductor-related stocks and increased retail investor exposure through higher-risk trading products.
Analysts quoted by Reuters said the decline appeared linked to short-term market factors, including profit-taking after strong gains in chip stocks and increased selling pressure from foreign investors. “It seems to be short-term side-effects from recent concentration in the chip sector,” Han Ji-young, an analyst at Kiwoom Securities, told Reuters during earlier trading.
The sell-off also affected other semiconductor companies globally. Market reports said shares of U.S. chipmaker Micron Technology fell as investors reassessed technology stocks following the declines in South Korea.
By the end of Tuesday’s session, Samsung Electronics and SK Hynix remained lower, while South Korean officials and market participants continued to monitor volatility. Details on the next market response remained unclear as investors assessed developments in the technology sector and broader financial conditions.
