On Dec 11, South Korea’s main bourse, the Korea Exchange, issued an “investment alert” on SK Hynix shares. The exchange also barred investors from buying SK Hynix on margin, instead requiring them to pay for the shares fully in cash. News of a potential New York stock listing had sent SK Hynix shares climbing by as much as 6.8% on Dec 8.
South Korea’s flagship Kospi index has been on a tear in 2025, driven by the country’s corporate “Value-Up” programme to boost shareholder returns as well as its critical role in chip manufacturing. Memory chip makers like SK Hynix and Samsung Electronics have seen their stocks go up by 217% and 103% ytd, respectively, outpacing the Kospi, which grew by 69% over the same period.
Analysts, however, remain divided on whether South Korea’s chipmakers will continue to prosper or if they are on the cusp of a collapse. Fears of overstretched AI valuations have prompted exchange operators and regulators to warn investors about potential risks.
