[Edaily Reporter Kim Hyung-il ] The KOSPI plunged more than 3%, falling to the 5,550 level—its lowest point since last April. Although U.S. tech and semiconductor stocks rebounded, investor sentiment was dampened by a confluence of factors, including concerns over the profitability of artificial intelligence (AI) investments, rising oil prices driven by Middle East tensions, and rising global interest rates. SK hynix and SKSQUARE(402340)also saw sharp declines as controversy erupted over the dual listing of Solidigm, a subsidiary of SK hynix(000660).

According to MP Doctor on the 20th, the KOSPI closed at 5,552.74, down 215.27 points (3.73%) from the previous trading day. The KOSPI opened 0.6% lower at 5,733.57, then extended its losses during the session, briefly dipping below the 5,500 mark. The KOSDAQ also closed at 781.97, down 26.92 points (3.33%) from the previous trading day. Both major indices broke their two-day winning streaks and turned lower.

Selling pressure was particularly pronounced among large-cap stocks. The KOSPI Large-Cap Index fell 3.8%, while the Mid-Cap and Small-Cap indices dropped 3.27% and 2.22%, respectively. By sector, transportation equipment and parts (-6.61%), medical and precision instruments (-6.43%), chemicals (-6.14%), metals (-5.96%), and machinery and equipment (-5.09%) all saw sharp declines.

Among the top market-cap stocks, SamsungElectronics(005930)fell 2.98% to 211,500 won. SK hynix dropped 4.23% to 1,223,000 won, and SKSQUARE(402340)also fell 5% to 741,000 won. LG Energy Solution(373220)fell 4.17%, and HyundaiMotor(005380)dropped 4.91%. SAMSUNG BIOLOGICS(207940)and Samsung Life Insurance(032830)also showed weakness, as selling pressure spread across large-cap stocks overall.

For SK Group affiliates, the controversy surrounding Solidigm’s IPO served as an additional burden. Solidigm is a subsidiary launched by SK hynix after it acquired Intel’s NAND flash business. Following reports that Solidigm was pursuing a Nasdaq listing, concerns were raised regarding the erosion of existing shareholder value and the issue of dual listings.

Lee Chan-jin, Chairman of the Financial Supervisory Service (FSS), stated during a parliamentary audit by the National Assembly’s Political Affairs Committee on the 19th regarding Solidym’s IPO, “Both the Financial Services Commission (FSC) and the FSS have determined that this would constitute a duplicate listing.” However, an official interpretation from the FSC is still needed to determine whether Solidym is subject to domestic securities registration requirements.

The market is closely watching to see what regulatory measures will result from the dual listing controversy. The KOSPI listing regulations, which took effect on August 3, strengthen the review process for dual listings and impose obligations on the parent company’s board of directors, such as conducting an assessment of the impact on shareholders and devising shareholder protection measures. As these obligations have emerged as a key issue during Solidim’s push for an overseas listing, the listing method, the use of proceeds from the public offering, and the impact of shareholder return plans on existing shareholder value are considered critical factors.

Behind the sharp decline in the domestic stock market—despite a rebound in U.S. markets—lie caution regarding AI investments and external uncertainties. On the 19th (local time), the Nasdaq Index rose 1.11% and the Philadelphia Semiconductor Index climbed 1.6% on the New York Stock Exchange, ending an eight-day losing streak. However, doubts regarding the funding burdens and investment profitability of AI infrastructure companies remain unresolved. Compounding this, rising international oil prices following reports of Houthi rebel airstrikes on Saudi Arabia, coupled with the burden of global interest rates stemming from political instability in France, have dampened investor sentiment.

Selling pressure also dominated the market. As of 3:00 p.m., retail investors were net buyers of 1.5231 trillion won on the KOSPI and 396.8 billion won on the KOSDAQ, but foreign investors were net sellers of 830.2 billion won on the KOSPI and 285.7 billion won on the KOSDAQ. Institutional investors were also net sellers, offloading 1.3143 trillion won and 112.7 billion won, respectively. Selling pressure from foreign investors and institutions intensified the downward pressure on both markets.

On the KOSDAQ, secondary battery stocks saw sharp declines. ECOPRO BM CO., LTD.(247540)plummeted 9.15% to 105,200 won, and ECOPRO CO., LTD(086520)also fell 7.74% to 83,400 won. Semiconductor materials, parts, and equipment stocks, such as JUSUNG ENGINEERING Co.,Ltd.(036930)(-5.44%), WONIK IPS Co.,Ltd.(240810)(-4.88%), and EO Technics Co., Ltd.(039030)(-3.77%), also traded lower. Alteogen Inc.(196170)fell 3.35% to 231,000 won, while HLB INC.(028300)rose 0.12%. By sector, the largest declines were seen in finance (-5.66%), non-metals (-4.53%), and construction (-4.34%).

Lim Jeong-eun, an analyst at KB Securities, stated, “Investor sentiment has been significantly dampened by the ongoing AI-related credit concerns stemming from CoreWeave, compounded by rising oil prices driven by Middle East tensions and rising global interest rates caused by political instability in France.” She added, “The domestic stock market performed poorly ahead of major corporate earnings announcements, with concerns over the earnings of export-oriented stocks due to the falling won-dollar exchange rate adding to the pressure.”

She continued, “The overall market weakness was evident, with the proportion of rising stocks on the KOSPI and KOSDAQ remaining at around 12% and 17%, respectively,” and added, “Whether concerns over the profitability of AI investments are alleviated by Meta Platforms’ earnings announcement scheduled for this week will be key to a stock market rebound.”