Samsung, SK Hynix shares drop 3% on Iran oil shock fears

On March 3, shares of Samsung Electronics and SK Hynix fell over 3% in Seoul trading following reports of US and Israeli strikes on Iran.

Investors cited concerns that a prolonged blockage of the Strait of Hormuz, which handles about 20% of global oil flows, could push oil prices higher and weigh on domestic valuations.

Lee Kyung-min, a Daishin Securities researcher, said past oil price surges have led to global economic downturns and financial crises after a lag, and that prolonged conflict would compromise oil supply chain stability, spike prices, and hurt the economy.

The securities industry expects the situation to be resolved within a month.

🔗 Source: Chosun Daily

🧠 Food for thought

Implications, context, and why it matters.

Retail investors are buying the dip as foreign capital sells

Foreign investors drove the selloff that pushed Samsung Electronics and SK Hynix lower, with net selling on the KOSPI at 1.8 trillion won as of around 9:50 a.m. on March 3 1.
Individual investors absorbed much of that pressure, net buying 1.25 trillion won in shares and limiting the downturn 1.
The same tug of war appeared on February 27, when foreign investors logged their largest single-day net selling on the KOSPI at 7.03 trillion won while individuals net bought 7.543 trillion won 1.
As big tech slid, money shifted toward areas tied to the conflict, including defense firm Hanwha Aerospace up 24% and shipping names that hit their daily upper price limits 1.

Geopolitical shocks threaten the capital-intensive path of the AI memory boom

Fears of higher oil prices if the Strait of Hormuz is blocked have added market swings, plus longer-term risk for semiconductor expansion built on AI demand.
SK Hynix holds about 62-64% of the High Bandwidth Memory (HBM) market as of Q2 2025 and plans long-run spending that includes a 600 trillion won (~$420 billion) semiconductor fabrication plant (fab) cluster 2.
If oil stays high, those budgets face strain, since $100 a barrel could lift South Korea’s inflation by 1.3 percentage points and pull growth into the low-to-mid 1% range 3.
That squeeze could slow new advanced chip capacity, which raises the odds of future shortages in memory chips that run the global AI industry 2.