SK Hynix shares plunge 10% in Seoul as the selloff spreads from chips to autos and batteries

Shares of SK Hynix, the world's second largest memory chipmaker, fell more than 10 percent on the Seoul exchange on Tuesday, 28 July 2026 (6 Mordad 1405). According to CNBC, the drop extends a selloff in semiconductor shares following another weak session on Wall Street. Samsung Electronics shares also fell more than 9 percent. SK Hynix's US listed shares have dropped below their initial public offering price.

What was new in this session was the spread of selling beyond the chip industry: SK Square fell 11.8 percent, Hyundai Motor 6.8 percent, HD Hyundai Heavy Industries 6.3 percent, Kia 5 percent and LG Energy Solution 4.7 percent. During the same session the Kospi index fell more than 8 percent to around 6,210 points, an over three month low; the index had closed on Monday, 27 July, up 0.97 percent at 6,755.75.

Three reasons were given for the fall: concern that large cloud infrastructure companies could rein in their capital spending on artificial intelligence, growing competition from Chinese memory chip producers, and investor caution ahead of earnings from major US technology companies and the Federal Reserve's interest rate decision later this week. South Korea is a traditional buyer of Middle Eastern oil, and turbulence in its equity market is one of the indicators of capital risk appetite across Asia.