South Korea's National Pension Service purchased approximately 370 billion won worth of SK Hynix stocks in July, according to Korea Exchange data released on July 20. The pension fund's buying activity occurred as SK Hynix shares declined 33.43% this month amid semiconductor peak-out concerns, closing at 1,764,000 won on July 20. The purchases reflect NPS's assessment that SK Hynix stock price fell excessively despite the company's leading position in the global high bandwidth memory (HBM) market. Bloomberg reported on July 19 that fund managers in London, New York, and Tokyo now routinely check Korean stocks before trading. The KOSPI index fell 304.33 points (4.46%) to 6,516.27 on July 20, with Samsung Electronics and SK Hynix both declining approximately 4%.
NPS Identifies SK Hynix as Top Stock Purchase Target in July
Korea Exchange data showed that institutional investors categorized as "pension funds and others" — effectively representing National Pension Service flows — net purchased approximately 370 billion won of SK Hynix stocks in July. SK Hynix has emerged as a global semiconductor sentiment indicator after listing ADRs on Nasdaq. The company's stock closed at 1,764,000 won on July 20, down 4.23% from the previous trading day. NPS accumulated only 27.6 billion won in net sales across the broader market during July, showing no clear directional bias. The pension fund's domestic investment weight decreased naturally as KOSPI declined sharply, driven by semiconductor stocks including Samsung Electronics and SK Hynix.
KB Securities Sets SK Hynix Target Price at 4.2 Million Won
Kim Dong-won, head of KB Securities Research Center, set a target price of 4.2 million won per share for SK Hynix. "Considering big tech companies' investment plans and explosive artificial intelligence (AI) demand, AI data center investment will likely continue increasing over the long term," Kim stated. "Memory supply shortages are projected to continue until at least 2028," he added. Market consensus views semiconductor peak-out concerns as excessive.
KOSPI Records 4.46% Decline with Broad-Based Selling
The KOSPI closed at 6,516.27 on July 20, down 304.33 points (4.46%) from the previous trading day. All stocks ranked 1st through 36th by market capitalization declined. Samsung Electronics fell 4.31%, SK Square dropped 2.89%, Samsung Electronics preferred shares declined 1.63%, Samsung Electro-Mechanics decreased 0.16%, Hyundai Motor fell 6.12%, and LG Energy Solution declined 4.94%. The KOSDAQ closed at 749.64, down 42.20 points (5.33%). Both exchanges triggered sell-side circuit breakers. Foreign investors sold over 11 trillion won worth of stocks in July, while individual investors net purchased over 10 trillion won, supporting the index. Asset management firms net sold over 2 trillion won, focusing profit-taking on SK Hynix (negative 2.445 trillion won) and Samsung Electronics (negative 784.8 billion won). Market speculation about a National Pension Service rebalancing "sell bomb" of up to 74 trillion won did not materialize.
FAQ
How much SK Hynix stock did the National Pension Service buy in July?
The National Pension Service purchased approximately 370 billion won worth of SK Hynix stocks in July, according to Korea Exchange data released on July 20.
What target price did KB Securities set for SK Hynix?
Kim Dong-won, head of KB Securities Research Center, set a target price of 4.2 million won per share for SK Hynix, citing long-term AI data center investment growth and projected memory supply shortages continuing until at least 2028.
How much did the KOSPI index decline on July 20?
The KOSPI index fell 304.33 points (4.46%) to close at 6,516.27 on July 20, with all top 36 stocks by market capitalization recording declines.
