Foreign Investors Dump Over 91 Trillion Won of SK Hynix Shares, Surpassing Samsung Electronics Sell-Off Amid Triple Whammy

South Korea's Kospi index fell 7.57% on Thursday, its worst day since July, driven by declines in Samsung Electronics and SK Hynix, which make up over a third of the index. The drop was triggered by U.S. inflation data and concerns about AI-related debt financing. The index has fallen over 20% from its June peak, entering a bear market. Trading was halted due to circuit breakers, and foreign investors continued selling. The market partially recovered on Friday, but analysts remain cautious.

Asian currencies weakened against the US dollar due to higher-than-expected US inflation, with the Philippine peso hitting a record low and the South Korean won at a two-week low. South Korean stocks fell 8%, led by chipmakers Samsung Electronics and SK Hynix, which dropped 10% and 12% respectively. TSMC also fell 3%.

SK Hynix's Solidigm unit seeks U.S. approval to export chipmaking equipment to its China facility, as a condition for building a semiconductor factory in the U.S. The company is considering upstate New York for the new facility. TrendForce expects NAND prices to rise 15% to 20% in Q4 due to high demand. SK Hynix denies expansion plans in Dalian but confirms equipment installation under U.S. authorization.

Chip stocks globally fell sharply, led by declines in SK Hynix, Samsung Electronics, Nvidia, and others, due to rising interest rate concerns and AI debt worries. Despite strong earnings from TSMC and ASML, the sector faced broad selloffs. South Korea's Kospi index dropped 7.6%, triggering a circuit breaker. TSMC reported a 41% revenue increase, while ASML raised its sales guidance.

Samsung Electronics shares fell 9.5% on Thursday, triggering circuit breakers in South Korea's stock markets. The decline was driven by concerns over Chinese chip competition, rising U.S. interest rates, and doubts about the AI boom. SK Hynix also dropped 11.1%, with foreign investors offloading 3.62 trillion won in shares. The Kospi index closed down 7.57%.

South Korea's KOSPI index fell 7.57% to 5,554.22 on Thursday, marking its seventh consecutive session of declines, totaling a 21% drop. Major companies like Samsung Electronics and SK Hynix saw significant losses. The sell-off was driven by concerns over AI investment profitability and rising US inflation. South Korea's financial authorities held an emergency meeting to assess risks and protect investors.