South Korea's semiconductor giants Samsung and SK Hynix dominate stock market

In the first half of 2024, South Korean equities were heavily driven by semiconductor stocks. The KRX semiconductor index jumped 181.81%, lifting the KOSPI by 101.14% while the KOSDAQ fell about 1%. Samsung Electronics and SK Hynix led the rally, posting gains of 178.57% and 307.07% respectively. Their combined market‑cap weight in the KOSPI rose from roughly 39.5% at the end of January to over 57% by June, and target‑price upgrades concentrated on these two firms (13 reports for Samsung, 14 for SK Hynix out of 271 total). Investor focus was evident online: a Naver finance query for the two stocks accounted for 31% of all searches at market open.

Despite the strong semiconductor performance, the “trickle‑down” effect to other sectors remained limited. Indices for healthcare and content fell, and only modest gains were seen in consumer and essential‑goods groups, keeping overall market volatility high. The KOSPI 200 volatility index hit a record 96.94, reflecting sharper swings as non‑semiconductor stocks failed to attract significant capital. Analysts note that AI‑driven demand and memory‑price dynamics are sustaining the chip sector, but expect a gradual easing of the extreme concentration and a broader reassessment of undervalued stocks in the second half of the year.