Samsung Securities Investment Information Team Leader Shin Seung-jin stated on the 28th that the KOSPI index sharp decline stemmed from weakened investor sentiment compounded by China-related concerns. The decline occurred as China's CXMT listing and deep ultraviolet (DUV) lithography equipment development news emerged amid already fragile semiconductor investor sentiment. Shin advised that given Samsung Electronics and SK Hynix stock prices have fallen nearly 40% from recent highs, investors should wait for major companies' earnings announcements rather than engage in panic selling.
China Concerns Show Limited Immediate Impact on Korean Semiconductor Industry
Shin explained that weakened semiconductor investor sentiment combined with news of China's CXMT listing and DUV lithography equipment development worsened the situation. He stated that China-related news dragged down US semiconductor technology stocks, which subsequently impacted Korean memory semiconductor and large-cap stocks on the 28th.
Shin noted that no major negative developments occurred in the memory semiconductor industry fundamentals. He stated that DUV equipment development news remains unverified, and even if confirmed, a 2-3 year technology gap exists that would not immediately affect Korea's semiconductor industry.
SK Hynix and Samsung Electronics Earnings Scheduled for the 29th and 30th
SK Hynix is scheduled to announce second-quarter confirmed earnings on the 29th, followed by Samsung Electronics on the 30th. US Big Tech earnings announcements are also scheduled, with Microsoft and Meta reporting on the 29th, and Amazon and Apple on the 30th.
Shin stated that the market direction will be determined by these two major semiconductor companies' earnings announcements scheduled for later in the week.
Semiconductor Cycle Shifts from Price Growth to Volume Growth
Shin characterized the memory semiconductor sector as transitioning from a price (P) cycle to a volume (Q) cycle. He explained that continuing the price increases seen in the first half of the year appears unrealistic, and concerns about slowing price growth rates from the second half underpin recent stock price corrections.
Shin noted that while some view increasing long-term contract ratios as reducing earnings volatility, investors remain concerned about memory semiconductors' cyclical sensitivity and earnings variability. He stated that stock price volatility should decrease once earnings announcements confirm continued profit sustainability.
Expert Recommends Gradual Buying Over Panic Selling
Shin advised against joining panic selling, recommending investors wait to confirm stock price direction after earnings announcements. He stated that Samsung Electronics and SK Hynix stock prices have declined nearly 40% from short-term highs, indicating the selling opportunity has passed and the market has entered short-term oversold territory.
Shin emphasized that restoring investor sentiment is the urgent priority. He stated that since the week represents the peak of earnings announcements, investors can wait to observe stock price direction before making decisions without being late. He added that investors with available cash would be better served beginning gradual purchases from now.
![Seoul Hana Bank headquarters dealing room display board on the 28th]()
FAQ
What caused the KOSPI index decline on the 28th?
Samsung Securities' Shin Seung-jin stated the decline resulted from weakened semiconductor investor sentiment combined with China-related concerns, specifically CXMT's listing and DUV lithography equipment development news, rather than fundamental semiconductor industry deterioration.
When are Samsung Electronics and SK Hynix scheduled to announce earnings?
SK Hynix is scheduled to announce second-quarter confirmed earnings on the 29th, and Samsung Electronics on the 30th. US Big Tech companies including Microsoft, Meta, Amazon, and Apple are also scheduled to report earnings on the 29th and 30th.
How much have Samsung Electronics and SK Hynix stock prices declined from recent highs?
Shin Seung-jin stated that Samsung Electronics and SK Hynix stock prices have declined nearly 40% from short-term highs, indicating the market has entered short-term oversold territory.
