SK Hynix Falls 5% in Seoul, KOSPI Drops 3%; US Pressures Korean Chipmakers to Invest in America

Asian stocks fell sharply at the time of writing, led by South Korea's KOSPI down 2.66%, as semiconductor giant SK Hynix Inc – ADR and Samsung Electronics slid amid reports that the US is pressuring Korean chipmakers to invest in US facilities.

South Korean Stocks Slide, SK Hynix Shares Plunge

Late Monday, South Korea's KOSPI fell 2.66% to 6,518.92, with the benchmark index extending losses as semiconductor stocks came under pressure.

SK Hynix shares in Seoul fell 5.03% to 1.587 million Korean won, while Samsung Electronics dropped 2.92% to 249,500 Korean won.

The selloff also hit US-listed SK Hynix shares.

The company's American depositary receipts fell 4.92% to $155.37 during Monday's US trading session, further declining 0.89% to $153.99 in after-hours trading.

Meanwhile, Japan's Nikkei 225 fell 1.04% to 64,848.36.

US Pressures Korean Chipmakers to Increase US Investment

According to a report by South Korean media outlet Chosun Ilbo, US officials have pressured the South Korean government and local semiconductor companies to invest in US memory chip production and ensure stable supply.

The pressure reportedly intensified after Seoul announced its 800 trillion Korean won Honam semiconductor mega-project.

South Korean officials indicated that Washington's concerns appear not to be about the domestic project itself, but rather more about delays in Korean companies' planned investments in the US.

Discussions reportedly also took place during Trade Minister Kim Jung-kwan's four-day visit to the US.

The South Korean government insists that semiconductor investment demands are separate from the $350 billion US investment agreement reached between the two countries last year.

Seoul is expected to announce its first US investment project in September.

US Futures Edge Up, Oil Prices Decline

Dow Jones futures fell 3.00 points, or 0.01%, to 53,486.00, while S&P 500 futures rose 3.00 points, or 0.04%, to 7,672.75. Nasdaq 100 futures gained 13.25 points, or 0.05%, to 29,119.00.

Among commodities, WTI crude oil fell 0.08% to $84.94 per barrel, and Brent crude dropped 0.30% to $91.89 per barrel. Natural gas futures declined 1.11% to $2.751 per MMBtu.

Meanwhile, the US dollar index, which tracks the greenback against a basket of currencies, stood at 98.973, down 0.01% on the day.

Iran Sanctions Add to Market Uncertainty

Separately, US Treasury Secretary Scott Bessent on Monday announced a new sanctions action targeting nearly 60 entities, individuals, and vessels linked to Iran's nuclear, missile, cyber, and oil networks.

The measures also expand sanctions exposure to digital assets, technology, gold, aviation, and shipping, with foreign financial institutions facing potential penalties if they assist Iran in evading sanctions.

Iranian Finance Minister Ali Madanizadeh told Iran's state-run Islamic Republic News Agency that Tehran is prepared for these measures and warned that Iran's response could go beyond defensive scope, CNN reported Monday.

"Obviously, it has been decided to try failure once again now," Madanizadeh said.