Amid the KOSPI's sharp decline for the second consecutive day, Samsung Electro-Mechanics also plummeted 7.63%, closing at 1,029,000 won. The decline widened as 'sell on news' for large-cap semiconductor stocks coincided with mechanical selling from single-stock leveraged ETFs.

On the 29th, the KOSPI closed at 5,663.24, down an additional 5.98% following the previous day's (28th) 10.84% plunge. Sell-side sidecars and circuit breakers were triggered for two consecutive days across both markets.

On this day, SK Hynix reported record quarterly results with Q2 revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won (up 557.2% year-over-year), yet its stock price plunged more than 9%. The prevailing analysis in the market is that the sell-off was strongly characterized as 'sell on news,' given that the strong performance had already been priced in.

Securities firms pointed to the mechanical selling of single-stock leveraged exchange-traded funds (ETFs) tracking specific stocks such as Samsung Electronics and SK Hynix — in addition to profit-taking in large-cap semiconductor stocks — as a key factor that amplified the decline. In fact, single-stock leveraged ETF products tied to SK Hynix plunged more than 30% in a single day.

The government held an emergency market situation review meeting on the same day and announced measures to strengthen regulations on single-stock leveraged ETFs, including setting per-individual investment limits and raising transaction costs.

Amid these market trends, Samsung Electro-Mechanics closed at 1,029,000 won on the 29th, down 85,000 won (-7.63%) from the previous trading day. During the session, it fell to as low as 926,000 won before partially recovering its losses. Trading value stood at 1.4009 trillion won, with a market capitalization of 76.8598 trillion won (5th on the KOSPI). This is 57.4% below its 52-week high of 2,417,000 won.

Although Samsung Electro-Mechanics is not a direct earnings announcement entity like SK Hynix or Samsung Electronics, it is part of the semiconductor and electronic components supply chain through products such as MLCC and semiconductor substrates (FC-BGA). It is therefore interpreted to have fallen in tandem with the broader decline in large-cap semiconductor stocks on this day.

[This article was written with the assistance of AI. This article is informational material for investment reference based on publicly available market data and does not recommend the purchase or sale of any specific stock. Investment decisions and the resulting responsibility lie solely with the investor.]