South Korean stocks plunged on May 28, with the KOSPI index falling 7.43% to 6253.81 at 9:25 AM, triggering a sell-side circuit breaker. The sharp decline was driven by overnight weakness in US semiconductor stocks, particularly Nvidia's nearly 5% drop, and concerns over Chinese semiconductor competition following CXMT's listing surge. Foreign investors and institutional traders led the selloff, dumping 790.9 billion won and 158 billion won respectively, while individual investors stepped in with 931.2 billion won in net purchases amid heightened volatility in the Korean market.
KOSPI Records 7.43% Decline at Morning Session
According to the Korea Exchange, the KOSPI index traded at 6253.81 at 9:25 AM on May 28, down 501.94 points (7.43%) from the previous trading day. The sell-side circuit breaker was activated immediately after the market opened. The won/dollar exchange rate rose 0.8 won to 1469.3 won compared to the previous day's closing price.
Samsung Electronics and SK Hynix Lead Semiconductor Selloff
The top 10 KOSPI stocks by market capitalization fell sharply, led by semiconductor companies. Samsung Electronics plunged 9.06% to 231,000 won, while SK Hynix dropped 10.52% to 1,625,000 won. Other major declines included Samsung Electronics preferred shares down 8.68%, SK Square down 10.40%, Samsung Electro-Mechanics down 11.85%, Hyundai Motor down 6.08%, LG Energy Solution down 3.45%, KB Financial down 0.17%, and Samsung Life Insurance down 7.22%. Samsung Biologics rose 1.55%.
Overnight, Nvidia fell nearly 5% following reports of pursuing large-scale payment guarantees for OpenAI, raising concerns about "circular financing" where AI chip companies invest in AI firms to inflate corporate valuations. SK Hynix ADR dropped over 7%, falling below its offering price, and the Philadelphia Semiconductor Index declined over 2%. Chinese semiconductor company CXMT's listing surge on the STAR Market and news of Chinese firms producing deep ultraviolet (DUV) lithography equipment added negative pressure on semiconductor and materials/parts/equipment companies.
Foreign and Institutional Investors Sell 948.9 Billion Won
Foreign investors sold 790.9 billion won and institutional investors sold 158 billion won in net terms during the early trading session on May 28. Individual investors purchased 931.2 billion won in net terms, attempting to counter the selling pressure.
KOSDAQ Activates Sell-Side Circuit Breaker
The KOSDAQ index fell 39.19 points (5.12%) to 725.67 on May 28. The KOSDAQ market also activated a sell-side circuit breaker following the KOSPI. Individual investors purchased 35.4 billion won in net terms, while foreign investors sold 10 billion won and institutional investors sold 22.2 billion won.
The top 10 KOSDAQ stocks by market capitalization showed declines primarily in semiconductor materials and parts companies. Alteogen fell 1.28%, EcoPro fell 5.33%, EcoPro BM fell 5.25%, Rainbow Robotics fell 8.18%, Jusung Engineering fell 10.94%, LN Corp fell 7.88%, Wonik IPS fell 13.11%, HLB fell 3.50%, ABL Bio fell 3.99%, and Pharma Research fell 1.76%.
FAQ
What caused the KOSPI stocks to fall 7.43% on May 28?
The KOSPI plunged due to overnight weakness in US semiconductor stocks, particularly Nvidia's nearly 5% drop following concerns about circular financing with OpenAI, and heightened worries over Chinese semiconductor competition after CXMT's listing surge and reports of Chinese DUV lithography equipment production.
How much did Samsung Electronics and SK Hynix stocks decline on May 28?
Samsung Electronics fell 9.06% to 231,000 won, and SK Hynix dropped 10.52% to 1,625,000 won during the morning trading session on May 28.
What was the trading activity of foreign and individual investors on May 28?
Foreign investors sold 790.9 billion won and institutional investors sold 158 billion won in net terms, while individual investors purchased 931.2 billion won in net terms during the early trading session.
