SK hynix and Samsung drive rising correlation between KOSPI and NASDAQ

The stock price movements of SK hynix and Samsung Electronics, two of the world's largest memory chip manufacturers, have become increasingly synchronized with Wall Street. According to data from Rayliant Global Advisors, the 60-day correlation between the South Korean KOSPI and the NASDAQ 100 has risen to approximately 0.50, marking its highest level since 2021.

This growing connection is driven by a shared dependence on demand for AI memory chips, which fuels both indices. Because SK hynix and Samsung Electronics together account for more than half of the KOSPI, the South Korean index is increasingly functioning as a semiconductor index.

Analysts note that this high correlation presents new risks for investors, as volatility in one market now directly impacts the other. This was evidenced in mid-July when a chip-driven sell-off caused the KOSPI to drop by more than 8 percent following a 15 percent plunge in SK hynix shares, while the NASDAQ 100 subsequently fell by 1.9 percent.