KRX Stock Market Today: KOSPI Drops 2% as Samsung Electronics Falls 5% & SK Hynix Slips 3% Ahead of $1.3 Trillion AI Investment Plan

South Korea’s stock market faced sharp pressure on June 29, 2026, as the KOSPI index fell nearly 2%, led by a 5% drop in Samsung Electronics and a 3% decline in SK Hynix. The sell-off came just as the country unveiled an ambitious $1.3 trillion AI and semiconductor investment strategy. 

While the long-term outlook remains tied to artificial intelligence growth, investors are questioning valuations and near-term risks. What triggered this sudden market reaction, and what could happen next?

Why Is the KOSPI Falling Today Despite Massive AI Investment Plans?

Market Reacts to Profit-Taking After Historic AI Rally

South Korea’s benchmark KOSPI index fell around 2% on June 29, 2026, even as the government announced one of its biggest AI and semiconductor initiatives. The decline surprised many investors because the long-term outlook for chipmakers remains strong.

However, the market had already priced in much of the AI optimism. Samsung Electronics and SK Hynix were among the biggest winners of the global AI boom. According to recent market data, the KOSPI had more than doubled over the previous 12 months, making profit-taking a key reason behind the sell-off.

Concerns Over Market Concentration

Another concern is concentration risk. Samsung Electronics and SK Hynix now account for a major share of KOSPI’s value. Analysts warn that heavy dependence on two semiconductor giants can increase volatility when investors rotate out of tech stocks.

The recent decline reflects short-term caution rather than a major change in AI demand expectations. Samsung Electronics Drops 5% Ahead of New Semiconductor Expansion

What Is Samsung’s Role in the AI Mega Project?

Samsung Electronics is expected to play a central role in South Korea’s new semiconductor strategy. The company plans to participate in large-scale investments that include advanced fabrication plants, AI infrastructure, and packaging facilities.

South Korea rolled out sweeping chip and AI mega-projects, as President Lee Jae Myung pledged to cement overwhelming industry leadership with investments worth more than $576 billion over several years https://t.co/HHVHqGe0SV

source @reuters

— TREK (@trek_official) June 29, 2026

The broader project involves more than 800 trillion won in private-sector commitments aimed at strengthening South Korea’s position in the global AI race.

Samsung Stock Details, Forecast, and Technical View

Samsung Electronics (KRX: 005930) closed near 339,500 won before the latest decline. Analyst consensus remains ‘Strong Buy,’ with an average 12-month target price of about 428,000 won, implying upside potential of more than 26%.

Technical indicators suggest the stock remains in a long-term uptrend despite recent weakness. Support is being watched near the 330,000-won area.

What Meyka Says: Meyka recently highlighted strong momentum driven by AI memory demand, Nvidia-related opportunities, and growing semiconductor investments.

Supporting analyst views remain positive. KB Securities recently raised its target price to 550,000 won, citing a powerful memory-chip cycle and improving earnings outlook.

SK Hynix Slips 3% Even as AI Memory Demand Remains Strong

Why Does SK Hynix Remain Important to AI Growth?

SK Hynix remains the global leader in High-Bandwidth Memory (HBM), a critical technology used in AI servers and accelerators. Demand from companies building advanced AI systems continues to support long-term growth expectations.

The company’s shares have delivered exceptional gains during 2026 as AI infrastructure spending accelerated worldwide.

Short-Term Volatility vs Long-Term Opportunity

Investors appear focused on execution risks and future spending requirements. Yet industry fundamentals remain strong.

South Korea’s semiconductor exports rose 188.4% during the first 20 days of June, highlighting continued demand for advanced memory products. For long-term investors, the current pullback may represent consolidation rather than a trend reversal.

Inside South Korea’s $1.3 Trillion AI and Semiconductor Strategy

What Does the Investment Plan Include?

The South Korean government unveiled a massive AI and semiconductor roadmap on June 29, 2026. Reports indicate total planned investments could reach roughly 2,000 trillion won, or about $1.3 trillion, over the next decade.

Key priorities include:

• New semiconductor fabrication facilities
• AI data centers
• Advanced chip packaging hubs
• Expanded HBM production
• Regional technology development projects

The goal is to strengthen South Korea’s competitiveness against the United States, China, and Taiwan in next-generation technologies.

Economic Impact and Growth Expectations

The initiative arrives as South Korea experiences one of its strongest export cycles in decades. Economists surveyed by Reuters expect June exports to rise 61% year over year, supported largely by semiconductor demand.

Investors increasingly use an AI stock analysis tool alongside traditional research to track opportunities across the rapidly evolving semiconductor sector.

What Investors Should Watch Next in the KRX Stock Market?

Key Catalysts Ahead

Several factors could determine market direction in the coming months:

• Samsung and SK Hynix earnings reports
• AI infrastructure spending trends
• Semiconductor export data
• Government policy details
• Progress on new fabrication projects

🚨 SOUTH KOREA JUST UNVEILED $650 BILLION IN AI AND CHIP SPENDING.

Samsung and SK Hynix announced a combined investment plan that could top 1,000 trillion won ($650 BILLION) over the next decade, alongside President Lee Jae Myung's push for balanced regional growth.

Here's the… pic.twitter.com/CXivLBpK2F

— Bull Theory (@BullTheoryio) June 29, 2026

Investors will also monitor whether AI demand remains strong enough to justify the sector’s premium valuations.

Conclusion

The latest KOSPI decline highlights the gap between short-term market sentiment and long-term industry fundamentals. While Samsung Electronics and SK Hynix faced selling pressure, South Korea’s ambitious AI and semiconductor strategy could create significant growth opportunities over the next decade. 

For investors, the focus should remain on earnings growth, export strength, and execution of the country’s massive technology investment plans rather than temporary market volatility.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.