Samsung and SK Hynix Fall Despite Separate $1.3 Trillion Chip Plans

Samsung Electronics and SK Hynix each unveiled major chip investment plans Monday at a presidential briefing in Seoul. Neither announcement stopped their stocks from falling sharply.

Samsung dropped 5.3% to 321,500 won from a Friday close of 339,500 won. SK Hynix fell 3.4% to 2,583,000 won from 2,673,000 won. The KOSPI settled near 8,258, down from 8,411.

Why the Announcements Didn’t Move Markets Higher

Samsung Group presented a roughly 1,000 trillion won spending package to President Lee Jae-myung. SK Group followed with a separate 1,000 trillion won plan. Both cover new semiconductor fabs, AI data centers, and chip cluster development over the next decade. Fortune reported the combined figure at around $1.3 trillion.

Markets shrugged. The Korea Exchange scrapped its planned launch of weekly options contracts tied to Samsung, SK Hynix, Hyundai Motor, and LG Energy Solution. Regulators pulled the product after retail investors poured into daily double-leveraged ETFs, pushing KOSPI volatility to record highs. That decision removed a key tool for short-term traders and hit speculative appetite immediately.

Chip Selloff and Middle East Pressure Compound the Pain

Global tech sentiment stayed negative. Last week, South Korea’s market triggered circuit breakers twice on fears over AI chip valuations. Samsung and SK Hynix make up roughly 42% of the KOSPI, so chip selling anywhere hits Seoul hard. South Korean retail investors who borrowed heavily during recent rallies now face compounding losses.

Middle East tension added pressure. The US struck Iranian military targets over the weekend. Both sides then agreed to halt attacks and meet on Tuesday in Doha. Japan’s Nikkei 225 also fell as SoftBank retreated, extending a pullback after six consecutive record sessions.