South Korea’s KOSPI index (Korea Composite Stock Price Index) fell nearly 9% to below 7000 on Monday, July 13, 2026. AI memory chip companies, SK Hynix and Samsung Electronics, which make up a majority of the market, have seen some of their most significant price crashes. SK Hynix’s stock price has fallen by more than 15% at the time of writing, while Samsung Electronics has dipped by more than 10%. Let’s discuss what’s going on, and if the South Korean crash will creep into the US stock market.
Why Have SK Hynix And Samsung’s Stocks Crashed?
SK Hynix, Samsung Electronics, and the larger South Korean stock market crash is likely due to increased profit-taking among investors. AI-based stocks have skyrocketed over the last few years and investors may be booking profits and relocating funds. Rayliant Global Advisors’ Phillip Wool believes risk management may also be playing a part in the ongoing correction. Wool stated, “Prudent risk management suggests you have to scale those back.“
SK Hynix also had its highly anticipated and successful Nasdaq debut. There has been some uncertainty as to how US-listed shares should be valued relative to the South Korean stock. According to Daniel Yoo, global strategist at Yuanta Securities, “Everybody’s really confused about what’s going to happen to the memory demand and where the fair price is.“Yoo highlighted that the increase in the supply of the stock available to investors may have also caused a price volatility.
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Adding fuel to the fire is the ongoing conflict between the US and Iran. The US launched fresh attacks against Iran, which may have led to a dip in investor confidence. Oil prices have surged by more than 4% and it may strain the already struggling larger economy. The move may have fueled the SK Hynix and Samsung Electronic price crash. Investors may be anticipating some supply chain issues if the conflict continues.