Samsung and SK Hynix Stocks Tumble Despite Combined $1.3 Trillion Investment Pledges
Samsung and SK Hynix unveiled separate 1,000 trillion won investment plans in Seoul, but both stocks fell sharply as regulatory changes, chip sector fears, and geopolitical tensions weighed on markets.
South Korean chipmaking giants Samsung Electronics and SK Hynix both revealed massive investment roadmaps during a presidential briefing in Seoul on Monday — yet the announcements failed to impress investors, sending both stocks into a steep decline.
Samsung Electronics shares dropped 5.3%, closing at 321,500 won after ending the previous Friday at 339,500 won. SK Hynix was not spared either, sliding 3.4% from 2,673,000 won to 2,583,000 won. The broader KOSPI index also retreated, settling near 8,258 compared to its prior close of 8,411.
**Trillion-Won Pledges Fail to Impress the Market**
During the presidential session, Samsung Group put forward an investment package worth approximately 1,000 trillion won, covering semiconductor manufacturing facilities, AI data centers, and chip cluster development over the next ten years. SK Group separately announced an equally ambitious 1,000 trillion won plan with similar targets. According to Fortune, the two commitments together represent roughly $1.3 trillion in projected capital deployment.
Despite the scale of these announcements, market participants remained unimpressed. A key contributing factor was the Korea Exchange's decision to cancel the planned rollout of weekly options contracts linked to Samsung, SK Hynix, Hyundai Motor, and LG Energy Solution. Regulators pulled the plug on the product following a surge in retail participation in daily double-leveraged ETFs, which pushed KOSPI volatility to unprecedented levels. The cancellation stripped short-term traders of a key hedging instrument and dampened speculative activity almost immediately.
**Chip Sector Pressure Weighs Heavily on Seoul**
The negative mood across global technology markets compounded the damage. During the prior week, South Korea's stock market triggered circuit breakers on two separate occasions, largely driven by concerns over inflated AI chip valuations. Given that Samsung and SK Hynix collectively account for roughly 42% of the KOSPI's weight, any weakness in the global chip sector translates directly into heavy losses for the South Korean market.
Retail investors who had taken on significant leverage during recent market rallies are now facing mounting losses. Data shared on social media highlighted the severity of the situation: the KOSPI recorded one of its worst weekly performances of 2026, losing approximately 10% in just five trading days and wiping out an estimated 550 trillion won — equivalent to around $350 billion — in market capitalization. AI and semiconductor stocks were cited as the primary drivers of the selloff.
**Geopolitical Risks Add to the Uncertainty**
External pressures further weighed on investor sentiment. Over the weekend, the United States conducted strikes on Iranian military targets, triggering a wave of risk-off trading across Asian markets. Tensions were partially eased after both sides agreed to pause hostilities and hold talks in Doha on Tuesday, but uncertainty lingered.
The broader Asian market also felt the strain. Japan's Nikkei 225 fell as shares of SoftBank pulled back, extending a correction following six consecutive record-setting sessions. The combination of domestic regulatory changes, chip sector anxiety, and escalating geopolitical tensions created a difficult environment for regional equities heading into the new trading week.
