Samsung Electronics and SK Hynix stocks fell sharply in pre-market trading on May 20, with Samsung Electronics down 4.71% to 243,000 won and SK Hynix declining 5.43% to 1,742,000 won as of 8:07 AM in Nextrade pre-market sessions. The declines followed weakness in US and Japan semiconductor stocks during the holiday period and escalating geopolitical tensions between the US and Iran. Han Ji-young, a researcher at Kiwoom Securities, noted that the market is reacting sensitively to already-known negative factors including CXMT's listing, delays in US data center construction, and slowing semiconductor profit growth rates — issues that previously appeared in the first half but were offset by AI narrative expansion and KOSPI forecast upgrades.
Top Korean Stocks Record Pre-Market Losses on May 20
According to Nextrade pre-market data at 8:07 AM on May 20, multiple large-cap Korean stocks exhibited sharp declines:
| Stock | Price Change | Percentage Change | Pre-Market Price |
|-------|--------------|-------------------|------------------|
| Samsung Electronics | -12,000 won | -4.71% | 243,000 won |
| SK Hynix | -100,000 won | -5.43% | 1,742,000 won |
| SK Square | -75,000 won | -6.19% | 1,137,000 won |
| Samsung Electro-Mechanics | N/A | -7.20% | N/A |
| Hyundai Motor | N/A | -3.65% | N/A |
| LG Energy Solution | N/A | -2.84% | N/A |
The widespread weakness across top market capitalization stocks reflected the impact of semiconductor stock declines in US and Japan markets during the holiday period, combined with ongoing geopolitical conflict between the US and Iran.
Kiwoom Securities Analyst Attributes Market Sensitivity to Known Negative Factors
Han Ji-young, a researcher at Kiwoom Securities, stated that "the market is reacting sensitively even to already-known negative factors." Han specified that materials triggering last week's adjustment include CXMT's listing, delays in US data center construction, and slowing semiconductor profit growth rates.
Han explained that "these materials were exposed multiple times in the first half, but at that time, semiconductor profit level-ups, AI narrative expansion, and KOSPI forecast upgrades offset the negative factors and led the bull market." Han diagnosed that "now, unlike before, the market's reaction function is changing."
Regarding KOSPI outlook, Han stated that "KOSPI is expected to secure downside support in the early-to-mid 6000 point range," adding that "the key is how much of the recent consecutive sharp declines can be recovered through major events scheduled during the week."
FAQ
What caused Samsung Electronics and SK Hynix stocks to fall on May 20?
Samsung Electronics and SK Hynix stocks declined in pre-market trading on May 20 due to weakness in US and Japan semiconductor stocks during the holiday period and escalating geopolitical tensions between the US and Iran. Samsung Electronics fell 4.71% to 243,000 won and SK Hynix dropped 5.43% to 1,742,000 won as of 8:07 AM in Nextrade pre-market sessions.
Why did Kiwoom Securities say the market is reacting sensitively to known factors?
Han Ji-young of Kiwoom Securities stated that the market is reacting sensitively to already-known negative factors including CXMT's listing, delays in US data center construction, and slowing semiconductor profit growth rates. Han noted that these same materials appeared multiple times in the first half but were previously offset by semiconductor profit improvements, AI narrative expansion, and KOSPI forecast upgrades — indicating the market's reaction function has changed.
What is the KOSPI outlook according to Kiwoom Securities?
Kiwoom Securities researcher Han Ji-young stated that KOSPI is expected to secure downside support in the early-to-mid 6000 point range, with the key factor being how much of the recent consecutive sharp declines can be recovered through major events scheduled during the week.
