Korean Chipmakers Crash as Bitcoin Stays Put at $64K

South Korean chipmakers Samsung Electronics and SK Hynix, which together produce two-thirds of the world's memory chips, saw their shares plummet over 7% on August 3. This sent shockwaves through the market, dragging down the Kospi index by 5% and pulling the broader MSCI emerging markets index lower by 1.1%. Meanwhile, Bitcoin remained steady near $64,000.

The sharp decline was a reversal from just two days prior, when SK Hynix surged as much as 28.4%, while Samsung gained 23.7%. The combined rally sent the Kospi to a record single-session surge of over 17% on July 31. However, this upward momentum was short-lived.

The volatility is largely attributed to concerns about AI demand and whether it can sustain the high valuations in semiconductor stocks. As major hyperscalers like Microsoft and Google require these chips for their operations, the sector's exposure to AI spending timelines carries significant weight in emerging-market indices.