SK Hynix shares tumbled more than 15% on South Korea’s Kospi on Monday, marking the worst single-day loss for the AI memory chipmaker’s local stock. The crash came just days after the company raised $26.5 billion in the largest U.S. listing by a foreign company, pricing American Depositary Receipts (ADRs) at $149 each. The ADRs opened at $170 on Friday, July 10, and closed nearly 13% higher, but when Seoul markets reopened, investors rushed to lock in profits.
The selloff hit the broader Kospi index hard, which dropped 9% — triggering a 20-minute trading halt. Samsung Electronics fell nearly 11%, while SK Square declined 15% and Samsung Electro-Mechanics tumbled 17%. The Kospi has now fallen 26% from its year-to-date high, slipping below key support levels.
Analysts described the move as a classic “buy the rumor, sell the news” pattern. Daniel Yoo of Yuanta Securities noted that the ADR offering added more supply, and the market is still seeking a fair valuation between the U.S.-listed ADRs and the Korean shares. He expects a recovery over the next 6–12 months.
Global chip stocks also felt the pressure. U.S. premarket trading saw Micron Technology drop 5.4%, Western Digital and SanDisk both decline around 7%, and AMD and Intel slip close to 3%. European chipmakers ASML, ASMI, and Besi fell 1–2%.
Geopolitical tensions added to the turmoil. Iran closed the Strait of Hormuz over the weekend, prompting U.S. airstrikes and Iranian counterstrikes on U.S. bases. Brent crude rose to $79 and WTI hit $74.30, raising energy costs for import-reliant South Korea. The South Korean central bank is expected to hike interest rates by 0.25% on Wednesday as inflationary pressures mount.
