Seoul, Feb 2, 2026, 19:35 KST — Market closed
- Samsung Electronics fell 6.29% to 150,400 won, pulling back sharply following its recent surge in Korea’s chip-driven rally.
- Traders reported a worldwide scramble for cash as a plunge in precious metals forced investors to reduce risk and cover margin calls.
- Attention shifts to whether forced selling eases in the next session and to Friday’s U.S. jobs report.
Shares of Samsung Electronics Co., Ltd. dropped 6.29% to close at 150,400 won on Monday, shedding 10,100 won from the previous session. (MarketWatch)
The selloff followed a steep fall in South Korean shares, with the Kospi plunging roughly 5% as global markets reeled from uncertainty over President Donald Trump’s choice for the next Federal Reserve chair. Tech giants took the hardest hit—SK Hynix dropped 8.7% during the session. (AP News)
Samsung’s move packs weight because it stands as the market’s giant and a bellwether for the AI-driven memory surge that’s buoyed Korean stocks. Christopher Forbes, CMC Markets’ head of Asia and the Middle East, called it “risk off and de-leveraging.” Meanwhile, Seo Sang-young, an analyst at Mirae Asset Securities in Seoul, blamed margin calls sparking “panic selling.” For context, a margin call demands extra cash when leveraged positions sour. (Reuters)
Commodities set the mood early. Gold and silver dropped again on Monday as CME Group hiked margin requirements for metal futures, a move that can force traders to liquidate positions when they need extra cash. Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia, said the simultaneous sell-off in precious metals and U.S. equities pointed to investors seeing Kevin Warsh — Trump’s pick to replace Jerome Powell in May — as more hawkish. IG analyst Tony Sycamore called the gold sell-off unusually sharp. (Reuters)
Chip stocks saw a mixed signal. Market researcher TrendForce raised its outlook, now predicting conventional DRAM contract prices will surge 90% to 95% in the January–March quarter compared to the previous period. That could boost memory makers—if demand sticks. (Reuters)
Monday’s action felt more like a sell-off targeting what was easiest to unload. Korea’s recent winners, being liquid and crowded trades, took the brunt of it. The selling pressure was widespread, not tied to any single company.
Samsung’s drop follows its recent report of record quarterly profits driven by robust memory-chip demand. The company also cautioned that chip shortages may linger through 2026–2027, a warning that has investors fixated on ongoing supply issues and pricing strength. (Reuters)
That dynamic can work both ways. Continued commodity volatility sparking margin-driven sell-offs might keep the market in turmoil, despite chip prices holding up.
Samsung faces a tricky balancing act: rising memory prices boost its chip division but also hike costs for its mobile and display units. If pricier components curb handset sales, gains from chips could be undercut.
Traders looking ahead to Tuesday’s session will be eyeing any hints that forced selling is slowing down. Precious metals and crypto have been shaky indicators of risk appetite lately. Meanwhile, the won and U.S. rate expectations remain in focus, especially following the surprise around the Fed-chair nomination.
Friday’s U.S. Employment Situation report for January, set for Feb. 6, is the next major catalyst. This release often shifts global rate expectations and risk sentiment. (Bureau of Labor Statistics)
