Samsung and SK Hynix Reach $1 Trillion Market Value, Prompting Funds to Sell

TLDR

• SK Hynix achieved a market value of over $1 trillion for the first time, joining Samsung and Micron.
• South Korea’s KOSPI index has seen a 95% increase in 2026, making it the top-performing major global index this year.
• Investment funds that have reached their 10% single-stock investment limits are now compelled to sell shares of Samsung and SK Hynix.
• Goldman Sachs estimates that diversification regulations have led to approximately $69 billion in sales since October.
• The price of memory chips doubled in the first quarter and is projected to increase by another 63% in the second quarter, driven by demand from the AI sector.

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(SeaPRwire) –   South Korea now boasts two companies valued at over $1 trillion. SK Hynix reached this valuation milestone for the first time this week, alongside its domestic competitor Samsung Electronics and U.S.-based Micron Technology.

This achievement is attributed to the substantial demand for advanced memory chips essential for AI systems. The prices of these chips saw a twofold increase in the first quarter of 2026 compared to the preceding period.

SK Hynix shares concluded Wednesday with a 9.3% gain, having surged as much as 14.9% during trading hours. Samsung shares advanced by 2.7% to a record closing price of 307,000 won. Both companies’ stocks have delivered exceptional returns over the past year.

Samsung shares have increased by 149% year-to-date in 2026. SK Hynix shares have risen by 215%, and Micron shares have climbed by 245%.

Forced Selling as Funds Hit Limits

The rapid appreciation of share prices has presented challenges for some investment managers. Funds adhering to a 10% single-stock investment limit are now obligated to divest shares as their holdings in Samsung and SK Hynix exceed these thresholds.

Firms such as GAM Investment Management in Zurich and Jupiter Asset Management in Singapore are among those that have had to adjust their portfolios to comply with these regulations.

Goldman Sachs estimates that diversification rules have prompted approximately $69 billion in sales since late October. Korea-focused funds managing close to $200 billion have been impacted as the combined market capitalization of the two chip manufacturers has grown.

Global investors have sold a net total of $63.6 billion in South Korean equities as of Thursday, marking the largest monthly outflow since records began in 1999. Samsung and SK Hynix collectively accounted for $58.6 billion of this amount.

Investors Look for Alternative Ways In

Some fund managers are exploring indirect investment avenues through proxy stocks. SK Square, which holds a 20.5% stake in SK Hynix, has experienced a more than tenfold increase in its value over the past year. Samsung Life Insurance, the largest shareholder of Samsung with an 8.58% stake, has seen its value more than triple.

Analysts at Mirae Asset Securities have raised their target prices for SK Hynix and Samsung by 18.8% and 14.6%, respectively. They anticipate that the demand for memory chips will continue to outpace supply through 2028.

Newly launched leveraged ETFs tracking Samsung and SK Hynix debuted this week and saw significant gains. Retail investor interest was so intense that a financial education website required for ETF access experienced temporary disruptions.

South Korea is now the first country outside the United States to have more than one company in the $1 trillion market value club. The KOSPI index has surged by 95% in 2026, following a 76% gain in the previous year, positioning it as the world’s leading major benchmark index for the current year.