Korean stocks plunge over 4%, SK Hynix rises against the trend

South Korean stocks experienced a significant downturn on Monday, with the benchmark KOSPI index plummeting 4.47% shortly after resuming trading. The market's sharp decline followed a broad sell-off in global markets the previous Friday, which South Korea missed due to a holiday.

However, semiconductor powerhouse SK Hynix emerged as a bright spot, defying the market's slump. After opening lower at 1.745 million Korean won, the company's stock quickly reversed course, climbing 1.52%. This resilience is attributed to sustained investor enthusiasm for artificial intelligence (AI) servers and high-bandwidth memory (HBM) technologies.

SK Hynix's strong performance reflects the ongoing market chase for AI-related stocks, a trend bolstered by gains in its US-listed American Depositary Receipts (ADRs) during the previous week. Meanwhile, fellow semiconductor giant Samsung Electronics also demonstrated a degree of market support, recovering from initial dips to trade around 255,000 Korean won.

The contrasting performances highlight the market's bifurcated sentiment, with investors prioritizing the long-term prospects of advanced memory technologies over broader economic concerns that are weighing down the wider market.