The stock prices of Samsung Electronics and SK hynix, the leading companies in the KOSPI, are down more than 2%.
According to the Korea Exchange, as of 9:17 a.m. on the 23rd, the stock price of Samsung Electronics, which has the highest market capitalization on the KOSPI, is currently at 57,900 won, down 2.69% from the previous trading day.
The stock price of SK hynix, which ranks second in market capitalization on the KOSPI, is also declining. It is down 2.53% (6,500 won) to 250,500 won.
News that the U.S. Donald Trump administration decided to restrict the supply of American semiconductor equipment to South Korean corporations operating factories in China has become bad news.
According to the Wall Street Journal (WSJ) on the 20th, the U.S. government has notified that it may restrict the entry of American equipment into the factories of Samsung Electronics and SK hynix in China.
If the sanctions materialize, Samsung Electronics and SK hynix will need to obtain approval from the U.S. Department of Commerce every time they bring American equipment into their factories in China. This will inevitably reduce the efficiency of the factories.
In addition to Samsung Electronics and SK hynix, the stock prices of semiconductor companies overall are declining. While DB HiTek is recording a downturn of more than 2%, LEENO Industrial's stock price is also down more than 2%.