South Korean Stocks Plunge to Trigger Circuit Breaker, Samsung and Hynix Suffer Bloodbath

TradingKey – South Korea’s stock market triggered its second circuit breaker of June, as Samsung and SK Hynix also suffered from panic selling.During the Asian trading session on June 23, the South Korean stock market continued to slide after the opening bell. KOSPI 200 futures fell 5%, triggering a circuit breaker that suspended program trading for five minutes. Among individual stocks, SK Hynix plunged more than 6%, nearly erasing yesterday’s gains to trade at 2.741 million won, while Samsung fell over 5% to 335,000 won.SK Hynix stock price chart, Source: TradingViewFollowing the market-wide circuit breaker on June 8, this marks the second major correction for South Korean equities this month. The core factors driving today’s market plunge and triggering the circuit breaker primarily include the following two points:Yesterday, Google lost two key AI talents, sparking market concerns over competitive moats in AI. This caused its stock price to plunge over 5%, dragging down other tech giants like Microsoft and Meta, and subsequently hitting the South Korean stock market.Furthermore, South Korea is considering measures to stabilize its stock market, a move that triggered panic selling. Market regulators stated yesterday, ‘South Korea is considering stabilization measures because leveraged products tied to semiconductor stocks have exacerbated volatility in the country’s stock market,’ adding that these products were launched too hastily.When negative catalysts like falling chip stocks hit the market, high leverage triggered intensive forced liquidations and panic selling, further amplifying the downside for the broader market. This also suggests that the panic has just begun, and there could be significant further downside ahead.This content was translated using AI and reviewed for clarity. It is for informational purposes only.



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