'Bought Samsung at 350,000 won,' 'bought Hynix at 2.3 million' — retail investors brace for a brutal Monday

"I bought Samsung Electronics at 350,000 won (about $229) — I don't know what to do," one investor wrote online.

"They said SK Hynix was heading to 3 million won, so I bought in at 2.3 million," another said.

Retail investors are on edge after a semiconductor-led rout on Wall Street sent the Nasdaq tumbling by its largest margin in more than a year, as chip stocks faced selling pressure bordering on panic.

Fears are mounting that Samsung Electronics and SK Hynix could break through the psychologically critical levels of 300,000 won and 2 million won, respectively. There are also concerns that the panic selling could drag down other stocks held back by the semiconductor giants' dominance. Most exposed are investors who bought near the top, betting on an uninterrupted chip rally.

On Friday, Samsung Electronics closed down 6.40 percent at 329,000 won, while SK Hynix fell 9.92 percent to 2.07 million won.

Monday looms as an even bigger concern, as the semiconductor rally that has driven the broader market now faces a sharp correction.

On Friday, the S&P 500 fell 2.64 percent to 7,383.74 on the New York Stock Exchange. The Nasdaq took the hardest hit, tumbling 4.18 percent to 25,709.43 — its steepest single-day drop since April 2025. The Dow Jones Industrial Average also declined 1.35 percent to 50,877.78.

The Philadelphia Semiconductor Index (SOX) collapsed 10.3 percent. Broadcom shed 7.9 percent, while Micron (-13.3 percent), AMD (-10.9 percent) and Marvell Technology (-13.3 percent) each lost more than 10 percent. Nvidia fell 6.2 percent and Tesla dropped 6.6 percent.

The selloff was triggered by a stronger-than-expected US jobs report, which revived fears of an interest rate hike and sent investors fleeing from the chip stocks that had led the market's advance.

The domestic market's benchmark index could break below 8,000 on Monday — a level it briefly pierced during trading on Friday. "I should have sold yesterday" and "I'm so worried" were among the reactions flooding investor forums. The semiconductor rally had drawn a large crowd into Samsung Electronics and SK Hynix in particular, with the number of retail shareholders in Samsung alone estimated at more than 5 million.

Margin financing in both Samsung Electronics and SK Hynix has also hit record highs. In margin financing, a brokerage lends a client money to buy shares in exchange for a deposit. The arrangement carries significant risk: annual interest rates run at 7 to 9 percent, and if falling share prices push the collateral ratio below a set threshold, the brokerage can forcibly liquidate the client's holdings.

A range of headwinds clouds the outlook — the prospect of higher interest rates, uncertainty over AI-driven growth, and potential capital outflows ahead of SpaceX's initial public offering scheduled for next week. Still, many analysts remain positive on Samsung Electronics and SK Hynix, arguing that while a short-term drop is possible, the underlying earnings improvement is actually gaining momentum.

park@heraldcorp.com