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Samsung Electronics Shares Plunge 10% on Geopolitical Fears, Profit-Taking
Shares of Samsung Electronics (005930.KS) plummeted 10.7% on Monday, closing at ₩254,500 after hitting an intraday low of ₩253,000. The dramatic sell-off was triggered by a confluence of negative factors, including a global risk-off move sparked by Middle East tensions, profit-taking in the Korean semiconductor sector, and investor disappointment with the company's latest earnings guidance.
A 'Perfect Storm' of Headwinds
The decline followed Samsung's preliminary Q2 operating profit announcement of approximately ₩60.4 trillion. While a historically strong figure, it fell short of the market's lofty expectations, which had been fueled by months of AI-driven optimism, leading to a classic "sell the news" event.
Selling pressure was amplified by technical and sector-specific factors. The recent NASDAQ listing of competitor SK Hynix's American Depositary Receipts (ADRs) on July 10 catalyzed profit-taking across Korean-listed chip stocks. Furthermore, single-stock leveraged ETFs tied to both Samsung and SK Hynix magnified the downward momentum, a volatility risk previously flagged by South Korean financial regulators.
AdBroader Market Turmoil
The sell-off occurred against a damaging macroeconomic backdrop. Over the weekend, Iran's declaration that it would close the Strait of Hormuz sent oil prices soaring and triggered a flight to safety in global markets. This hit South Korea’s export-reliant economy particularly hard.
The broader KOSPI index plunged 8.95% to close at 6,806.93, its worst single-day performance of 2026. The decline was so severe that the Korea Exchange was forced to trigger a Level 1 circuit breaker, halting all trading for 20 minutes. During the session, foreign and institutional investors offloaded a net ₩2.8 trillion in KOSPI shares, underscoring the scale of the capital flight.