Samsung, SK hynix Post Worst Weekly Drop Since 2008 Crisis

The substantial share price drops for Samsung Electronics and SK hynix were primarily driven by significant foreign selling. Overseas investors offloaded 11.2068 trillion won ($7.8 billion) worth of shares from the KOSPI last week, with the two chip giants accounting for the vast majority of these outflows. This sustained selling pushed foreign ownership in Samsung Electronics to its lowest level since July 2009, and for SK hynix, its lowest since December 2021.

Analysts hold differing views on the market's immediate future. Some point to the chipmakers' solid earnings fundamentals, citing recent upward revisions in profit forecasts for both companies. The improving medium- to long-term demand outlook from ASML and projections for a double-digit increase in DRAM prices in the fourth quarter also support expectations for a potential W-shaped recovery in earnings.

Conversely, other analysts advise caution, suggesting it is premature to interpret a single day's rebound as a sustained trend reversal, particularly given its limited momentum compared to prior declines and the modest scale of foreign net buying. An industry official indicated that market sentiment is currently affected by "caution over AI credit risk," suggesting that upcoming earnings reports from key AI value chain companies, such as Meta and Lam Research, could provide clearer direction.