Samsung Electronics shares tumbled 7.0% to ₩249,750 on Wednesday, leading a steep selloff in South Korea’s benchmark KOSPI index after the market fell more than 6%.
The Korea Exchange activated its sell-side sidecar mechanism and temporarily suspended program trading as losses deepened in the KOSPI, which had ended the prior session down 1.55% at 6,869.83, ending a six-day winning streak. Institutional investors net-sold nearly ₩785 billion worth of Korean equities in that session, amplifying pressure on blue-chip technology stocks.
The broader decline tracked overnight losses in U.S. memory chip peers, as investors reduced exposure to the sector amid deteriorating risk sentiment. Geopolitical tensions between the U.S. and Iran, alongside disruptions in the Strait of Hormuz, pushed crude oil prices higher, reigniting inflation concerns and lifting U.S. Treasury yields.
Reports that the U.S. had requested South Korea prioritize American-based memory chip manufacturing in a planned $350 billion investment package added to uncertainty for Korean semiconductor exporters. Seoul denied the specifics of those negotiations, but the reports contributed to the sector’s retreat.
SK Hynix, Samsung’s domestic rival, also faced heavy selling pressure as the market digested the combination of global risk aversion and elevated energy prices.
