TLDR
- Samsung Electronics closed down 7.8% at ₩330,500 Friday amid widespread tech sector selloff in Korean markets
- Apple’s decision to raise MacBook and iPad prices undermined investor optimism about AI-driven hardware demand
- Single-stock leveraged ETFs magnified downward pressure on Samsung and SK Hynix shares
- The KOSPI index plunged over 8%, activating its fifth circuit breaker in 2026
- Samsung is preparing to unveil a ₩1,000 trillion ($646 billion) decade-long investment strategy covering chips, AI infrastructure, and more
Samsung Electronics closed Friday’s session at ₩330,500, marking a steep 7.8% decline that compounded an already devastating week. The tech giant had previously suffered a 12% single-day plunge on June 23.
Samsung Electronics Co., Ltd., SMSD.L
That earlier crash prompted the KOSPI’s fourth circuit breaker activation this year. Friday witnessed the fifth, forcing the Korea Exchange to suspend trading across the entire index for 20 minutes around 12:10 p.m. Seoul time as the benchmark tumbled beyond 8%.
The catalyst this time originated from Apple, which revealed plans to increase prices for its MacBook and iPad product lines, citing escalating memory and component expenses. The announcement rattled market participants who had been counting on a robust, AI-fueled hardware expansion cycle.
Chip manufacturers worldwide absorbed the impact. SK Hynix, Samsung’s primary domestic competitor, experienced a similar downturn — plummeting more than 8% — while leveraged ETFs linked to both companies collapsed over 15%.
Leveraged ETFs Amplified Market Volatility
Single-stock leveraged exchange-traded funds focused on Samsung and SK Hynix have emerged as a mounting worry for South Korean financial authorities. Friday’s action demonstrated precisely the risk regulators had cautioned about — amplifying market movements far beyond what underlying business conditions warranted.
This created a self-reinforcing cycle of liquidation that punished Samsung more severely than the news alone would have justified.
Japan’s Nikkei 225 declined in tandem, highlighting the rapid regional contagion of the selloff.
Samsung had experienced substantial appreciation throughout the previous year, meaning Friday’s losses partly represent profit-taking following an impressive rally. When market sentiment shifts, reversals can accelerate rapidly.
$646 Billion Capital Commitment Sparks Investor Anxiety
The timing proved particularly unfortunate. Domestic media outlets revealed this week that Samsung intends to announce a ₩1,000 trillion ($646 billion) investment blueprint spanning the coming decade — potentially representing South Korea’s largest-ever corporate capital commitment.
Reports indicate the initiative encompasses semiconductor manufacturing facilities, AI data infrastructure, battery production, and display technology. Approximately ₩300 trillion would fund chip fabrication plants in southwestern Korea, while more than ₩350 trillion targets AI data centre development.
South Korean President Lee Jae Myung is scheduled to convene a national economic briefing on June 29, where Samsung Vice Chairman Jun Young-hyun and SK Hynix CEO Kwak Noh-jung will both outline their respective investment strategies.
Instead of welcoming the announcement, certain investors interpreted the enormous spending pledge as a potential liability. Committing hundreds of trillions of won to infrastructure during uncertain chip demand conditions represents a substantial gamble.
SK Hynix independently disclosed intentions to secure up to $29.4 billion through a Nasdaq listing of American Depositary Receipts, allocating the capital toward new fabrication plants, packaging capabilities, and manufacturing equipment.
Both revelations arrive as South Korea endeavours to maintain its competitive position in the global AI and semiconductor landscape amid mounting competition from the United States and China.
SK Hynix shares were trading down 8.36% at the time of writing, while Samsung recovered slightly to ₩339,500 after trimming earlier losses.
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