Korean Stocks Slide as Samsung and SK Hynix Give Back Record Friday Gains

South Korean stocks fell sharply Monday as Samsung Electronics and SK Hynix reversed course following their biggest single-day gains on record just one trading session earlier.

The Kospi Index dropped as much as 5.5% in early trading, with both chipmakers sliding around 9% after Friday’s surge of 27% and 30% respectively.

Profit-Taking Follows Record Rally

Analysts described Monday’s pullback as a natural correction after an extraordinary run. Analyst said the drop reflects payback from Friday’s rally combined with external pressures, including a strengthening won and growing concern over China’s progress in artificial intelligence and semiconductor technology.

Wild Swings Mark a Volatile Week for Korean Markets

Friday’s rally itself capped an unusually turbulent stretch, with the Kospi rising 18% in a single day after tumbling 17% over the three prior sessions amid broader AI-related market swings. The surge was driven largely by foreign investors covering short positions.

Foreign Investors Drive the Selloff

The same overseas investors who bought record volumes of Kospi shares on Friday turned sellers Monday, offloading more than $698 million worth of index stocks in early trading as leveraged positions were unwound.