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Samsung Electronics and SK Hynix Rebound to Close Higher Despite Early Sell-off

Electronic Technology · Semiconductors · yonhap_finance · 2026-08-31

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After a sharp morning decline triggered by U.S. rate hike concerns, Samsung and SK Hynix recovered to finish over 1% higher, supported by share buybacks.

What Happened

Market Volatility: Samsung Electronics and SK Hynix experienced a volatile trading session, starting with sharp declines of over 4% due to negative sentiment from U.S. markets. Despite the initial pressure, both semiconductor giants managed to reverse the trend and close with gains of over 1%.

External Headwinds: The market was weighed down by hawkish comments from Fed official Kevin Warsh regarding inflation, which fueled expectations of a September rate hike. Additionally, reports of surging revenue at China's CXMT raised concerns about increased competition in the global DRAM market.

Trading Dynamics: The broader KOSPI market saw heavy selling pressure from retail, foreign, and institutional investors throughout the day. Foreign and institutional investors were particularly active in offloading shares within the electronics sector.

Share Buyback Impact: The recovery was largely driven by significant share buyback programs initiated by both companies. These buybacks provided a crucial buffer, with the 'other corporate' investor category recording massive net purchases that effectively countered the widespread selling.

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