South Korean Semiconductor Stocks Fall Sharply in July; KRX SK Hynix Down 33.62%, Semiconductor Index Off 30.12%

According to Financial News, South Korean semiconductor stocks posted significant declines in July, with the KRX SK Hynix Index falling 33.62% month-to-date and the KRX Semiconductor Index down 30.12%, far outpacing broader market losses. The KOSPI declined 21.07% over the same period. Market concerns about whether the AI chip sector has peaked have emerged amid the pullback, driven partly by leveraged ETF redemptions and margin calls.

Securities analysts said it is premature to declare a peak in semiconductor profits. KB Securities analyst Lee Eun-taek noted that while profit growth rates may slow by year-end, an actual profit decline is unlikely, and Q4 is expected to be the peak operating margin period for the sector.