TLDR
- The KOSPI index mounted a 5.76% Friday rally, settling at 8,088.34 after plunging to 7,300 during intraday trading
- SK Hynix climbed 10.88% while Samsung Electronics gained 8.22%, recouping substantial portions of Thursday’s declines
- News of Anthropic’s potential partnership with Samsung on custom chip development provided additional market support
- Market experts characterize Thursday’s downturn as excessive reaction to Meta’s AI computing capacity plans
- SK Hynix revealed intentions for a $29.4 billion capital raise and future Nasdaq ADR listing to broaden investor access
South Korea’s equity market delivered a powerful rebound on Friday following one of its most severe single-session declines in recent history.
The KOSPI index touched an intraday bottom of 7,300 during morning hours before rallying to finish 5.76% higher at 8,088.34. Trading had been suspended on Thursday via circuit breaker mechanisms after the benchmark tumbled 7.89%.
Semiconductor Leaders Drive Market Resurgence
SK Hynix soared 10.88% on Friday, recovering from the previous day’s devastating 14.6% decline. Samsung Electronics advanced 8.22%, clawing back significant ground after Thursday’s 9.1% plunge.
These semiconductor giants represent the KOSPI’s heaviest weightings. Their price action typically dictates broader index direction.
Emerging reports suggesting AI firm Anthropic has entered discussions with Samsung regarding proprietary hardware development provided additional upward catalyst on Friday.
Across the Pacific, U.S. memory chipmaker Micron declined 5.5% on Thursday to close at $975.56. Despite this pullback, shares remain elevated more than 166% year-to-date as memory semiconductors maintain their central role in artificial intelligence infrastructure buildouts.
The KOSPI has surged approximately 92% during 2026, establishing itself as the globe’s top-performing major equity benchmark. This contrasts sharply with the S&P 500’s comparatively modest 9.3% advance over the identical timeframe.
Market Professionals Dismiss Previous Day’s Panic as Excessive
Thursday’s market rout originated from reports indicating Meta intended to monetize excess AI computational infrastructure. Market participants interpreted this as potentially signaling peak demand for AI hardware investments.
Multiple South Korean investment firms challenged this interpretation.
Samsung Securities analyst Kim Joong-han stated that computational resources remain in “absolute shortage” and suggested the entire sector, Meta included, likely faces ongoing capacity constraints.
Mirae Asset Securities analyst Kim Young-gun characterized the selloff as “a valid window for bargain buying in semiconductor stocks.”
Mirae Asset projects global technology giant capital expenditures will hit $806 billion this year, representing a 73% year-over-year increase. The firm anticipates spending will expand by another 20%-plus next year.
Aggregate order backlogs reported by major technology corporations during Q1 reached $2.1 trillion, marking a 24% quarterly increase. Approximately $656 billion of this pipeline is projected to convert into revenue within two years.
SK Hynix delivered separate corporate news this week. The company’s board greenlit a $29.4 billion secondary share offering concurrent with planned American Depositary Receipt listing on the Nasdaq Global Select Market.
This strategic initiative could expand SK Hynix’s shareholder base while enhancing access to American capital markets. Analysts identify potential dilution and market absorption capacity as primary concerns surrounding such a substantial offering.
The market faces its next critical milestone on July 7, when Samsung is scheduled to publish preliminary second-quarter financial results. These figures will likely determine whether Friday’s recovery proves sustainable or temporary.
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