Samsung Electronics and SK Hynix Lead Broad Semiconductor Drop While Weak U.S. Tech Stocks and Labor Talks Fuel the Pullback
The KOSPI is displayed on the dealing room board at Shinhan Bank in Jung-gu, Seoul, on May 13. (Photo courtesy of Shinhan Bank)
The KOSPI fell sharply at the start of trading on May 13, dragged down by heavy foreign selling and simultaneous weakness in major semiconductor stocks. The index, which had been on a steep upward trajectory and was on the verge of breaking through the 8,000 level for the first time, appears to have entered a consolidation phase as short-term overheating concerns and weakness in U.S. technology stocks are combined to weigh on sentiment. Domestic equities remained unable to shake off early-session weakness. Samsung Electronics plunged more than 5% after labor-management negotiations collapsed, and shock from U.S. Consumer Price Index (CPI) data compounded the selloff, pushing the KOSPI through the 7,500 level.
According to the Korea Exchange on May 13, the KOSPI opened at 7,513.65, down 129.50 points from the previous session. As of 9:15 a.m., the index had slid further to 7,412.95, a decline of 230.20 points (3.01%) from the prior trading day.
Foreign investors were the primary driver of the decline. They began dumping shares from the opening bell, adding heavy pressure to market supply and demand. As of 9:15 a.m., foreign investors had net sold 1,354.8 billion won (approximately $907.4 million) in the securities market. By contrast, individual and institutional investors purchased 1,104.3 billion won (approximately $739.6 million) and 238.2 billion won (approximately $159.5 million) worth of shares, respectively, absorbing the foreign selling.
Large-cap stocks by market capitalization were broadly weak. Declines were particularly pronounced among semiconductor-related blue chips. Samsung Electronics fell more than 4% in early trading, weighing on the index, while SK Hynix also slipped more than 1%.
Samsung Electronics Preferred, SK Square, and Samsung C&T, of which stocks tied to semiconductors and major conglomerates, also fell in tandem. Stocks that had recently posted strong gains, including HD Hyundai Electric and Doosan Enerbility, were unable to escape profit-taking pressure either.
On the previous day, Samsung Electronics’ labor and management held their second post-mediation meeting at the National Labor Relations Commission office in the Government Complex Sejong to try to conclude the 2026 wage agreement. However, even after 17 hours of discussion stretching from 10:00 a.m. on May 12 to 3:00 a.m. on May 13, the two sides were ultimately unable to reach an agreement.
The weakness in domestic equities was seen as reflecting the underperformance of technology and semiconductor stocks on the New York Stock Exchange the previous day. The tech-heavy NASDAQ Composite Index fell 0.71%, while the S&P 500 Index declined 0.16%. The Philadelphia Semiconductor Index dropped 3.01%. Among major semiconductor stocks, Micron fell 3.61%, while Qualcomm plunged 11.46%.
Market analysts said that short-term upside fatigue in semiconductor stocks, which had been leading both domestic and international markets, provided the trigger for the current pullback.
Han Ji-yeong, a researcher at Kiwoom Securities, said, “A supply-demand shock can occur in both Korean and U.S. markets as they work to ease short-term overheating concerns surrounding semiconductor stocks, which are the dominant group leaders,” while cautioning , “It is necessary to avoid treating this as a definitive reversal of the price trend.”
The KOSDAQ index also traded lower. On the same day, the KOSDAQ opened down 2.86 points from the previous session at 1,176.43, before extending its losses to 23.20 points (1.96%) to reach 1,156.09 as of 9:15 a.m.
Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate started the weekly trading session at 1,493.20 won per dollar, up 3.30 won from the previous session.
Yoon Young-sil
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