SK Hynix stocks experienced a historic single-day crash on the 13th, closing at 1.845 million won per share, down 15.37% from the previous trading day — the largest decline in the company's history. Broadcaster Seo Dong-ju, who purchased shares at 2.59 million won, publicly disclosed losses exceeding 700,000 won per share during a YouTube appearance. Expert Jang Woo-jin attributed the crash to underperforming American Depositary Receipt (ADR) listing momentum, delayed institutional rebalancing, and passive fund outflows triggered by price gaps between domestic shares and ADRs. The semiconductor sector has faced heightened volatility amid weakness in US chip stocks and shifting fund allocation strategies.
Seo Dong-ju Discloses 700,000 Won Loss Per Share
Seo Dong-ju appeared on the YouTube channel 'Money in the Trap' on the 13th, describing herself as a "Korean ant stuck on the 259th floor of the Hynix apartment." The "259th floor" reference indicated her purchase price near 2.59 million won per share. During filming, she stated: "I just checked and the stock price dropped to the 1.8 million won range. Can I cry for a moment before we start?" On that day, SK Hynix closed at 1.845 million won, resulting in an evaluated loss exceeding 700,000 won per share for investors who bought at peak prices. Seo added: "I know in my head that I need to wait, but my heart keeps burning with anxiety. Every time I check the stock screen on my phone, I scream without realizing it."
Jang Woo-jin Identifies ADR Listing and Fund Rebalancing as Crash Triggers
Jang Woo-jin, CEO of Geumsigong, analyzed the crash during the same broadcast: "I didn't expect it to fall this much. I thought there could be volatility, but the speed of the decline was much faster than anticipated. Pension funds failed to act as a support line by applying brakes, and institutions' rebalancing responses were too delayed, which seems to have triggered the situation." Jang identified the ADR listing as a primary cause. The ADR listing was initially expected to serve as positive momentum for valuation re-rating to match global competitors like US-based Micron. However, the listing underperformed due to concurrent weakness in US semiconductor stocks. This led to an outflow of passive fund inflows that had entered to exploit price gaps between domestic shares and ADRs. Jang stated that short selling of Hynix combined with long positions shifting to Samsung Electronics further accelerated the decline.
SK Hynix Stocks Rebound 3.69% on the 14th
According to the Korea Exchange, SK Hynix stocks closed at 1.913 million won on the 14th, up 3.69% from the previous trading day. Samsung Electronics also rose 3.34% on the same day. The rebound was attributed to bargain-hunting inflows following the prior day's excessive decline. Jang advised against panic selling: "The company's fundamentals still have room and remain solid, so there is a possibility of further rebound." He recommended technical strategies: "After a stock chart peaks and declines, it necessarily forms a 'right shoulder' pullback zone. Instead of crying in despair, observe the market calmly and reduce portfolio weight to secure cash when the rebound zone arrives." For materials, parts, and equipment stocks, he recommended ETF-based diversified investment over individual stock purchases due to high volatility and limited information access.
FAQ
What caused the SK Hynix stock crash on the 13th?
Expert Jang Woo-jin identified the underperforming ADR listing as the primary cause. The listing failed to generate expected valuation re-rating due to weakness in US semiconductor stocks. This triggered outflows from passive funds that had entered to exploit price gaps between domestic shares and ADRs. Delayed institutional rebalancing and short selling further accelerated the 15.37% single-day decline.
How much did SK Hynix stocks recover on the 14th?
SK Hynix stocks closed at 1.913 million won on the 14th, up 3.69% from the previous trading day's close of 1.845 million won. Samsung Electronics also rose 3.34% on the same day. The rebound was attributed to bargain-hunting after the prior day's excessive decline.
