<p>SK Hynix crashes KOSPI: stocks plummet a record 15%, market loses trillions</p>

Shares of SK Hynix, a key South Korean memory chip manufacturer, experienced the steepest drop in their history. During trading on July 13, the company's shares plunged by 15.4%, triggering a massive sell-off across the entire Korean stock market.

This collapse was the culmination of a prolonged correction. By that date, SK Hynix shares had already lost a significant portion of the value accumulated during a historic rally fueled by the artificial intelligence frenzy. Since the June record, the company's market capitalization has shrunk from approximately $1.25 trillion to $1.05 trillion, representing a decline of nearly 38% and a loss of about $200 billion in market value.

Details of the Collapse

The drop in SK Hynix dragged down the entire market. On July 13, South Korea's KOSPI index plunged by 8.95% to 6806.93 points. Such a sharp decline triggered a circuit breaker, which temporarily halted trading to curb panic sentiment. July is shaping up to be SK Hynix's worst month since October 2008 — with shares falling 30% during this period alone.

Interestingly, the sell-off continued on the U.S. exchange. SK Hynix shares, traded on the Nasdaq under the ticker SKHY, lost 9% in pre-market trading, falling to $154, following an impressive debut on Friday when they surged over 14% to $170.

Why Did This Happen?

The sell-off was a natural profit-taking after a historic rally driven by the AI boom. Investors began reassessing their expectations for memory chip market growth, fearing that current valuations had already priced in all future successes. SK Hynix's massive weight in the KOSPI index made its decline a key factor in the record drop of the entire market.

My analysis: The current correction is not panic, but rather a sobering moment. The market has realized that even a "royal" company in the AI sector has limits to growth. Investors should focus on fundamental indicators of HBM memory demand, not emotional fluctuations. If SK Hynix confirms strong quarterly results, this drop could become an excellent entry point for long-term positions.