KOSPI falls 5.46% as Samsung and SK Hynix shares retreat
In short
South Korea's KOSPI fell 348.89 points, or 5.46%, to close at 6,035.35 on October 13 after dropping below 6,000 during trading. Samsung Electronics fell 7.39% and SK Hynix 10.09%, as outlets linked the sell-off to foreign selling and concerns about competition from China's CXMT.
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South Korea's KOSPI closed October 13 at 6,035.35, down 348.89 points, or 5.46%, as large semiconductor shares fell sharply. Yonhap said it was the largest percentage decline since August 19. The index had dropped below 6,000 during trading before recovering some ground. Korea Economic Daily reported an intraday low of 5,911.11, a fall of 7.41%. [ 1 , 2 ]
Samsung Electronics ended down 7.39% at 232,000 won, while SK Hynix fell 10.09% to 1,443,000 won. Outlets linked the declines to concerns about technological advances and planned server memory products from Chinese memory maker CXMT. CBS NoCut News reported that CXMT planned to launch DDR5 RDIMM products using a next-generation cell structure and hybrid bonding technology before the end of the year. [ 6 , 12 ]
Foreign investors sold shares while retail and institutional investors bought, according to Newsis. The index's sharp decline triggered a temporary suspension of program sell orders around 09:47. CBS NoCut News reported that the suspension lasted five minutes. KOSPI market capitalisation fell below 5,000 trillion won for the first time since July 30, the outlets reported. Kyunghyang Shinmun said the index had declined for five consecutive trading sessions, losing 13.83% over that period. [ 6 , 12 , 16 ]
The KOSDAQ also declined, closing 12.16 points, or 1.43%, lower at 837.03. Not all major KOSPI shares fell: Newsis reported that LG Energy Solution gained 3.02% and Samsung Biologics rose 0.42%. CBS NoCut News cited analysts who pointed to concerns about returns on artificial intelligence investment, reduced risk-asset exposure, foreign investor position adjustments and a temporary gap in buying after Samsung's share repurchases ended. [ 6 , 12 ]
Why it matters
Reports said CXMT's plans for next-generation server memory intensified concerns about Korean memory makers' competitiveness. The decline prompted a temporary suspension of program sell orders, and KOSPI market capitalisation fell below 5,000 trillion won.