Samsung Electronics and SK Hynix Stocks Rebound 4% and 2% After 13-14% Drops

Samsung Electronics and SK Hynix attempted a limited rebound on day 29 after dropping 13% and 14% respectively the previous day. The two semiconductor stocks rose approximately 4% and 2% in the securities market, though the gains did not match the previous day's decline magnitude. Securities analysts assessed that semiconductor leading stocks are passing through the final stages of extreme decline, with 12-month forward price-to-earnings ratios for Samsung Electronics at 3.7 times and SK Hynix at 3.8 times already reflecting concerns.

Semiconductor Stocks Record Average 51% Decline from June Peaks

From June peaks, Samsung Electronics declined 39%, SK Hynix declined 47%, Samsung Electro-Mechanics declined 51%, and LG Innotek declined 66%, representing an average 51% decline. The KOSPI adjusted 34% from its peak over approximately one month. Kim Dong-won, head of KB Securities Research Division, stated that the 12-month forward P/E ratios of Samsung Electronics at 3.7 times and SK Hynix at 3.8 times both fall below 4 times, already reflecting concerns.

Analysts Attribute Decline to Psychological Factors

Kim Dong-won characterized the adjustment as extreme decline stemming from psychological factors rather than fundamentals. Park Sang-hyun, researcher at iM Securities, noted that an exceptional phenomenon is occurring, with the KOSPI adjusting 34% from its peak in approximately one month while domestic export conditions maintain strong expansion. Park stated that China's semiconductor industry is clearly growing, but the sustainability of the CXMT shock appears small, as seen with DeepSeek.

FAQ

What happened to Samsung Electronics and SK Hynix stocks on day 29?

Samsung Electronics and SK Hynix rose approximately 4% and 2% respectively on day 29 after dropping 13% and 14% the previous day. The rebounds were limited and did not match the previous day's decline magnitude.

How much have semiconductor stocks declined from their June peaks?

From June peaks, Samsung Electronics declined 39%, SK Hynix declined 47%, Samsung Electro-Mechanics declined 51%, and LG Innotek declined 66%, representing an average 51% decline. The KOSPI adjusted 34% from its peak over approximately one month.

What do analysts say caused the semiconductor stock declines?

KB Securities' Kim Dong-won attributed the adjustment to psychological factors rather than fundamentals, noting that 12-month forward P/E ratios for Samsung Electronics (3.7x) and SK Hynix (3.8x) already reflect concerns. iM Securities' Park Sang-hyun noted that domestic export conditions maintain strong expansion despite the stock price adjustments.