Shares of Samsung Electronics and SK hynix, Korea's leading semiconductor stocks, were weak in early trading on the 13th. As U.S.-China trade tensions resurfaced, semiconductor stocks that had led gains in the domestic market have been falling one after another.
As of 9:11 a.m. that day, SK hynix was trading at 406,500 won, down 21,500 won (5.02%) from the previous session.
At the same time, Samsung Electronics was down 3.28% at 91,300 won, and HANMI Semiconductor was down 4.03% at 114,300 won.
On the 10th, U.S. President Donald Trump said he would impose an additional 100% tariff on China starting next month in response to China's rare earth export controls. As a result, uncertainty has grown over a U.S.-China summit that had been expected to take place at the Asia-Pacific Economic Cooperation (APEC) meeting in Gyeongju.
Jeong Jeong-young, an analyst at Korea Investment & Securities, said, "As it would have been the first face-to-face meeting between U.S. and Chinese leaders since the launch of Trump's second term, the market may take it as a disappointment."
However, some analysis suggests this round of U.S.-China tensions could remain a short-term issue. Kim Dae-jun, an analyst at Korea Investment & Securities, said, "While volatility will rise, there is still a lack of evidence that the leadership of the market has turned," adding, "It is not the time to cut exposure to the information technology (IT) sector, which is currently driving the Korean market."