KOSPI Plunges 4.6% Amid Semiconductor Selloff Affecting SK Hynix and Samsung

The KOSPI stock index declined 4.6% due to a selloff in semiconductor-related shares, specifically SK Hynix and Samsung. These companies experienced significant drops in value, with the decline affecting the broader market.

South Korea's KOSPI index tumbled 4.6% on August 6, closing down over 300 points as a semiconductor selloff triggered a Korea Exchange "sidecar" halt on program sell orders. SK Hynix fell roughly 10%, while Samsung Electronics dropped about 6%, reversing gains from the prior two sessions.

The two chipmakers make up a large share of KOSPI's market cap, so their swings drive the index. The drop followed weak overnight signals from AI-linked names on Wall Street, where memory suppliers issued guidance that missed elevated expectations despite beating estimates, a pattern echoed by AMD, which slid on a soft outlook, and HBM peer MU.

Analysts pointed to profit-taking after a sharp run-up in memory stocks, plus renewed concern about near-term chip demand and AI capex sustainability. South Korea's chip and AI-linked market has expanded quickly this past year, amplifying both the upside momentum and the downside now showing up.

Investors are watching whether SK Hynix and Samsung stabilize: a rebound in memory sentiment could steady broader tech indices, while continued weakness may suggest the correction has further to run. US AI-capex names like NVDA are worth tracking, given how closely Wall Street chip sentiment has tracked Korean market moves this cycle.

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