Korean chip stocks fall as U.S. tech stocks also decline

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South Korean chip stocks fell on Monday, following a significant drop in U.S. technology shares.

Samsung Electronics Co. stocks were trading at 67,200 won ($50.17) as of 9:10 a.m., down 2.47 percent from the previous close. SK hynix Inc. shares saw a decline of 2.81 percent to 152,000 won, while Hanmi Semiconductor Co. stocks fell by 3.21 percent.

Kosdaq stocks also saw losses, with Leeno Industrial Inc., HPSP Co., and EO Technics Co. down by 1.96 percent, 2.24 percent, and 1.64 percent respectively.

The drop follows a steep decline in U.S. technology stocks on Friday after the August 2024 jobs report showed a smaller than expected growth in non-agricultural employment, which dampened investor sentiment. Notable declines included Nvidia Corp. (-4.09 percent), Broadcom Inc. (-10.36 percent), Advanced Micro Devices Inc. (-3.65 percent), and Qualcomm Inc. (-3.37 percent), contributing to a 4.52 percent drop in the Philadelphia Semiconductor Index.

For their parts, EcoPro BM Co. and EcoPro Co. stocks hit 52-week lows on Monday amid uncertainties in the secondary battery sector.

EcoPro BM shares were at 155,000 won as of 9:38 a.m., down 2.02 percent from the previous day but recovering from a 52-week low of 152,300 won. EcoPro shares traded at 77,100 won, down 1.03 percent but also recovering from a 52-week low of 75,600 won earlier.

The secondary battery sector has been in a downward trend since the latter half of 2023 due to concerns about declining demand and increased competition from Chinese manufacturers. Although there has been some rebound since mid-August 2024, the sustainability of this rebound is uncertain given the challenging outlook for the electric vehicle (EV) market.

“As global EV demand continues to slow, there is high uncertainty about the timing of performance improvement for secondary battery companies,” a Yuanta Securities Korea Co. analyst said, highlighting selective screening of stocks within the sector.