my timesThe Korea Times

AI investment fears spark panic selling in Samsung, SK hynix

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By Park Han-sol
  • Published KST
  • Updated KST
The KOSPI is displayed at Hana Bank’s headquarters dealing room in Seoul, Friday morning. The KOSPI plunged more than 8 percent in early trading, triggering a circuit breaker. Yonhap

The KOSPI is displayed at Hana Bank’s headquarters dealing room in Seoul, Friday morning. The KOSPI plunged more than 8 percent in early trading, triggering a circuit breaker. Yonhap

Fears that the artificial intelligence (AI) investment cycle may be nearing its peak triggered a wave of panic selling in semiconductor stocks, Friday, sending shares of Korea’s two chipmaking giants, Samsung Electronics and SK hynix, plunging nearly 10 percent.

As of 10:30 a.m., SK hynix had tumbled 10.28 percent, while Samsung Electronics had fallen 7.99 percent.

The benchmark KOSPI opened 2.24 percent lower at 5,263.26 before triggering a circuit breaker just three minutes into the session, which temporarily suspends trading for 20 minutes when market movements become too volatile and breach a certain threshold.

The index subsequently plunged more than 8 percent, falling below the 5,000 mark for the first time in 10 months since January.