Samsung Electronics (005930.KS) and SK hynix (000660.KS) opened down around 4 percent in premarket trading on Nextrade (NXT) on Friday, in the aftermath of a sharp decline in US chip stocks. Semiconductor stocks, which had led the recent rally in the Korean market, appeared to take a breather amid concerns over short-term overheating.
According to Nextrade, Samsung Electronics was trading at 338,000 won on Friday morning, down 3.84 percent from the previous session, while SK hynix fell 4.66 percent to 2.191 million won. Other semiconductor and IT-related stocks also weakened across the board, including SK Square (-4.56 percent) and Samsung Electro-Mechanics (-3.61 percent).
US stocks closed mixed overnight. The Dow Jones Industrial Average rose 874.86 points, or 1.73 percent, to close at 51,561.93. However, the tech-heavy Nasdaq Composite Index fell 23.02 points, or 0.09 percent, to 26,830.96. In particular, Broadcom plunged 12.59 percent after offering guidance below market expectations, and Micron also fell 7.74 percent, triggering a wave of profit-taking across the semiconductor sector.
Analysts interpret the correction not as a signal of a deteriorating industry outlook, but as a reflection of the burden following a sharp rally. Indeed, chip stocks have continued their steep climb in recent days, repeatedly setting new highs on expectations of expanded artificial intelligence (AI) investment.
"The correction in leading stocks does not stem from fundamental or macroeconomic negatives, such as an imminent memory down cycle or intensified discount rate pressure from a surge in interest rates," said Han Ji-young, an analyst at Kiwoom Securities. "As consecutive record highs raised market expectations in the short term, investors looking to take profits after a specific event temporarily piled in."
