Retail investors in South Korea are cutting losses, while Wall Street is going on a frantic buying spree—same SK Hynix, two different worlds.

South Korea’s stock market is plunging.

On July 8, the KOSPI crashed 5.35%, triggering a circuit breaker during the trading session. From its June peak, the South Korean market has pulled back more than 20%, officially entering a technical bear market.

So what about SK Hynix?

In just nine trading days, its share price slid from nearly 3 million won to 2.07 million won, and its market value evaporated by more than $260 billion. On July 8 alone, it dropped another 5.68%.

Retail investors are cutting losses, and leveraged products are getting liquidated— the 2x long Hynix ETF has fallen more than 57% from its intra-year high.

A chorus of cries of despair.

But at the very same time, something else happened—

SK Hynix’s US IPO was oversubscribed by more than 7 times.

Global top-tier institutions like Baillie Gifford and Coatue Management placed orders starting at $200 million each; some went straight in with $1 billion. The three institutions combined have expressed intended subscriptions totaling as much as $7 billion.

Raising $24.5 billion, it is poised to set the second-largest record for a foreign company’s US listing in history—only behind Alibaba.

On one side, South Korea’s market is collapsing and triggering circuit breakers, with retail investors fleeing for the exits.

On the other side, Wall Street institutions are snapping up ADRs, oversubscribed by 7 times.

Same company, two worlds.

What are Koreans selling? What is Wall Street buying?

First, let’s see why South Korea is breaking down.

First: capital is “changing lanes.”

Previously, if US institutions wanted to buy Hynix, they had to route through the Korea Exchange—exchange rates, liquidity, and information disclosure were all obstacles. Once ADRs went live, Nasdaq could be used directly: T+0, shortable, with options.

Overseas institutions are doing one thing: selling the Korean listed shares, waiting to buy US ADRs. This isn’t a lack of confidence in SK Hynix—it’s just moving to a more convenient place to buy.

Second: a stampede caused by leverage.

When Samsung and Hynix fell, leveraged ETFs tracking them were forced to liquidate. Those liquidations then hit the stock price again—forming a vicious cycle. South Korea’s deputy prime minister held an emergency meeting overnight.

Third: the chips are too crowded.

Goldman Sachs data shows that in the first half, the KOSPI surged 101%, but 87% of the gains came from just two sectors: AI hardware and semiconductors. The entire South Korean stock market is betting on a single track. Once risk appetite turns against it, there is no other sector that can pick up the slack—no other sector can absorb the risk appetite reversal.

Fourth: good news is used up.

Samsung delivered what is arguably its strongest performance in history—quarterly operating profit of 89.4 trillion won, up 1810% year over year. And the result? The stock kept falling regardless.

“Buy the rumor, sell the fact.” When expectations are already priced in to the fullest extent, even the best earnings become a signal to exit.

So why is Wall Street going wild buying?

Because institutions are looking at three years from now—not three days from now.

Bernstein said clearly that the memory bull market could extend through 2027. SK Hynix’s expected gross margin is 90.8% in 2026 and 94% in 2027.

It has the world’s No.1 market share in HBM and is deeply tied to Nvidia. This is not a cyclical stock—it’s the gatekeeper of AI computing power.

The South Korean market treats it like a cyclical stock and trades it as: sell when it has run up.

The US market prices it as a core AI asset and assigns a long-term premium.

Same thing—completely different valuation logic in two markets.

Tomorrow will be the real test

On July 10, SKHYV will list on Nasdaq. On July 13, it will switch to the official ticker code SKHY.

Its first-day performance will determine which story the market believes—South Korea’s “cycle peak,” or Wall Street’s “AI long bull.”

If the ADR rallies strongly, the local Korea-listed shares may rebound alongside it, and arbitrage capital could flow back.

If the ADR breaks below the issue price, then the concerns in the South Korean market will be validated, and global AI hardware could face another round of selling.

I lean toward the former.

Because 7x oversubscription is not retail sentiment—it’s top-tier institutions voting with real money. Money from Baillie Gifford and sovereign wealth funds won’t cancel orders just because the KOSPI triggers a circuit breaker.

“When Korean retail investors are selling in panic, Wall Street is using $24.5 billion to tell them: you sold the wrong thing.”

The memory cycle isn’t over; it’s just that the slope is easing.

Real smart money always moves the chips—from the hands of the weak—into its own pocket when others panic.

Let’s see what Nasdaq reveals tomorrow.

Disclaimer: The above is a personal opinion sharing and does not constitute any investment advice. The market carries risks; trade with caution.#GUSD年化升至3.8% #特朗普宣布美伊停火结束 #SK海力士ADR获超额认购 $BTC $SKHY $MU