Samsung Electronics and SK Hynix both closed down over 6% on the 7th, despite Samsung posting record quarterly earnings. Samsung fell 6.92% to 296,000 won after announcing Q2 operating profit of 89.4 trillion won, the highest in company history. SK Hynix dropped 6.02% to 2,202,000 won, briefly touching 2.08 million won intraday. The declines followed a sharp rally in semiconductor stocks, triggering profit-taking after earnings confirmation. South Korea's KOSPI index tumbled 4.91% to 7656.31, activating a circuit breaker for the sixth time this year as foreign and institutional investors sold heavily.
Samsung Electronics Reports 89.4 Trillion Won Q2 Operating Profit
Samsung Electronics disclosed Q2 preliminary results before market open on the 7th. Consolidated revenue reached 171 trillion won and operating profit hit 89.4 trillion won, up 129.31% and 1810.26% year-over-year respectively. Quarter-over-quarter, revenue rose 27.74% and operating profit climbed 56.21%. The operating profit figure set a new quarterly record for the company.
Market consensus for Samsung's Q2 operating profit stood at 84.5807 trillion won, meaning actual results exceeded expectations. The stock opened at 307,000 won and declined throughout the session, reaching an intraday low of 286,000 won before closing at 296,000 won (down 22,000 won from the previous session's 318,000 won). According to the Korea Exchange, the selloff reflected profit-taking following the recent sharp run-up in large-cap semiconductor stocks.
SK Hynix Falls Ahead of Nasdaq ADR Listing
SK Hynix closed at 2,202,000 won on the 7th, down 141,000 won (6.02%) from the previous session's 2,343,000 won. The stock fell to 2.08 million won during trading, briefly threatening the 2 million won level.
SK Hynix is scheduled to list American Depositary Receipts (ADR) on the US Nasdaq on the 10th (local time). Domestic trading on the 7th saw broader semiconductor sector selling pressure outweigh medium- to long-term expectations surrounding the ADR debut.
KOSPI Activates Circuit Breaker Amid Semiconductor Sell-Off
The KOSPI index closed at 7656.31 on the 7th, down 395.02 points (4.91%) from the previous session's 8051.33. The index fell as low as 7389.22 intraday. By investor type, foreigners net sold 2.9175 trillion won and institutions net sold 310.8 billion won, while retail investors net bought 3.1361 trillion won.
The Korea Exchange triggered a Level 1 circuit breaker at 1:51 PM after the KOSPI remained down more than 8% from the prior close for one minute. This marked the sixth circuit breaker activation this year and the 12th in history.
Analysts Maintain Long-Term Memory Semiconductor Outlook
Kim Dong-won, head of research at KB Securities, stated: "Memory supply through 2027 will remain extremely limited due to stagnant production capacity expansion, while demand driven by AI proliferation is growing rapidly. Resolving the supply shortage is expected to take at least two more years."
Chae Min-sook, analyst at Korea Investment & Securities, said: "Market attention will refocus on memory market conditions and high-bandwidth memory (HBM) competitiveness. Revenue growth from expanding HBM market share and higher average selling prices (ASP) relative to competitors will drive earnings performance."
FAQ
What happened to Samsung Electronics and SK Hynix Korean stocks on the 7th?
Samsung Electronics fell 6.92% to 296,000 won and SK Hynix dropped 6.02% to 2,202,000 won on the 7th, despite Samsung announcing record Q2 operating profit of 89.4 trillion won. The declines triggered profit-taking after a recent rally in semiconductor stocks.
Why did the KOSPI activate a circuit breaker on the 7th?
The KOSPI index fell over 8% from the prior close and remained at that level for one minute, prompting the Korea Exchange to halt trading at 1:51 PM on the 7th. This was the sixth circuit breaker activation this year, driven by heavy selling in large-cap semiconductor stocks.
