TLDR
- SK Hynix crossed $1 trillion in market value for the first time, joining Samsung and Micron
- South Korea’s KOSPI index is up 95% in 2026, the world’s best-performing major index this year
- Funds hitting 10% single-stock limits are being forced to sell Samsung and SK Hynix shares
- Goldman Sachs estimates diversification rules have triggered around $69 billion in selling since October
- Memory chip prices doubled in Q1 and are forecast to rise another 63% in Q2 due to AI demand
South Korea now has two companies worth over $1 trillion. SK Hynix crossed that threshold for the first time this week, joining domestic rival Samsung Electronics and U.S.-based Micron Technology.
The milestone was driven by surging demand for high-end memory chips used in AI systems. Prices for those chips doubled in the first quarter of 2026 compared to the previous period.
SK Hynix shares closed up 9.3% on Wednesday, after rising as much as 14.9% during the session. Samsung shares rose 2.7% to a record close of 307,000 won. Both stocks have delivered extraordinary gains over the past year.
Samsung shares are up 149% so far in 2026. SK Hynix shares are up 215%, and Micron shares have climbed 245%.
Forced Selling as Funds Hit Limits
The rapid rise in share prices has created a problem for some fund managers. Funds that follow a 10% single-stock cap rule are now being forced to sell as their positions in Samsung and SK Hynix grow too large.
GAM Investment Management in Zurich and Jupiter Asset Management in Singapore are among the firms that have had to rebalance portfolios to stay within the rules.
Goldman Sachs estimates diversification rules have triggered roughly $69 billion in selling since late October. Korea-focused funds managing nearly $200 billion have been affected as the two chipmakers’ combined market weighting has risen.
Global investors sold a net $63.6 billion of local Korean equities through Thursday — the biggest monthly outflow since records began in 1999. Samsung and SK Hynix together accounted for $58.6 billion of that figure.
Investors Look for Alternative Ways In
Some fund managers are turning to proxy stocks to gain indirect exposure. SK Square, which holds a 20.5% stake in SK Hynix, has risen more than 1,000% over the past year. Samsung Life Insurance, the largest holder of Samsung with an 8.58% stake, has more than tripled.
Analysts at Mirae Asset Securities raised their target prices for SK Hynix and Samsung by 18.8% and 14.6% respectively. They expect memory chip demand to keep exceeding supply through 2028.
New leveraged ETFs linked to Samsung and SK Hynix launched this week and surged on their debut. Retail investor demand was so strong that a financial education website required for ETF access went temporarily offline.
South Korea is now the first country outside the U.S. to have more than one company in the $1 trillion club. The KOSPI index has risen 95% in 2026, following a 76% gain last year, making it the world’s best-performing major benchmark so far this year.
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