During the third week of October (12–16), the KOSPI plunged by more than 14%, falling to the 5,600 level. Leading stocks Samsung Electronics and SK Hynix dropped 17% and 24%, respectively, while semiconductor and substrate stocks also fell sharply in succession. In contrast, shipping stocks with high expectations for third-quarter earnings, as well as pharmaceutical and biotech stocks, rose even amid the market decline.
According to the Korea Exchange on the 17th, the KOSPI closed at 5,668.05 this week, down 957.88 points (14.46%) from Jeonju (6,625.93). The domestic stock market plunged as concerns grew over the profitability of AI (artificial intelligence) and the technological pursuit by Chinese semiconductor companies, compounded by a shock from the U.S. CPI (consumer price index).
Leading stocks Samsung Electronics and SK Hynix fell 17.75% and 24.33%, respectively, during this period. SK Hynix ranked fifth in terms of decline among KOSPI-listed stocks with a market capitalization of over 1 trillion won and weekly trading volume exceeding 100 billion won. SK Square, which holds shares in SK Hynix, also dropped 25.33%.
The decline was significant for semiconductor materials, components and equipment (so-bu-gang) stocks and substrate stocks that had recently shown an upward trend. Lee Sang-yeon, a research analyst at Shin Young Securities, analyzed that "semiconductor so-bu-gang stocks are in a phase where profit-taking selling is emerging."
LG Innotek fell 28.93%. Investor sentiment worsened further as forecasts emerged that its third-quarter operating profit would fall below the consensus estimate. Yuanta Securities expected LG Innotek's third-quarter operating profit to significantly underperform the consensus estimate due to an unfavorable exchange rate environment.
Korea Circuit plunged 26.45%. Doosan, which produces CCL (copper-clad laminates) for substrates, also fell 23.7%. In addition, Samsung Electric (-23.16%), Hanmi Semiconductor (-21.35%), DB Hitek (-22.19%), Isu Petasys (-20.80%), and Hoosung (-20.08%) all declined.
In contrast, shipbuilding stocks rose on expectations for third-quarter earnings. The top gainer during this period was HMM, which climbed 12.98%. Hana Securities stated that HMM's third-quarter operating profit is expected to reach 1.06 trillion won, a 257% increase year-on-year, and raised its target price from the previous 21,000 won to 24,000 won. However, it maintained its investment rating at "Neutral." Pan Ocean also rose 11.44%.
Pharmaceutical and biotech stocks such as Yuhan Corporation, Celltrion, and Samsung Biologics rose. All of these stocks have high expectations for third-quarter earnings. During this period, domestic securities firms forecast that Yuhan Corporation, Celltrion, and Samsung Biologics would record results in line with market expectations.
Im Jeong-eun, a research analyst at KB Securities, said, "Earnings from major domestic and international companies will also be released on the 19th," adding that "individual company-specific momentum will be highlighted as the full-fledged earnings season begins."
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