Chinese storage technology breakthrough combined with AI valuation concerns, Korean stocks Samsung and SK Hynix open down over 7% BlockBeats News: On October 13th, the sell-off of South Korean semiconductor stocks further expanded. As of 11:20 Beijing time, Samsung Electronics fell 7.29%, SK Hynix fell 8.35%, and the Korea Composite Index (KOSPI) fell 6.05% to 5997.99 points. The South Korean stock exchange once activated the sell side "Sidecar" mechanism in early trading, suspending the program trading of KOSPI component stocks for 5 minutes, indicating that market selling pressure has significantly increased. The market concerns first come from the improvement of China's competitiveness. Changxin Storage recently disclosed that it has made key progress in a memory chip architecture that is also being promoted by Samsung Electronics and SK Hynix. Despite the distance between technological breakthroughs and the formation of large-scale, commercialized competitive production capacity, funds have begun to reassess the impact of Chinese storage manufacturers catching up on the future pricing power and valuation premium of South Korea's two major players. The marginal changes in AI investment logic have also amplified the decline. Hock Tan, CEO of Broadcom, stated that the demand for computing infrastructure still exceeds the industry's current supply, and the supply-demand gap may continue until 2029 or even 2030; As hardware bottlenecks such as chips, memory, and power gradually ease, capital acquisition capability may become the biggest constraint on AI expansion. Many AI investors are not clear about the business model they are betting on, but set extreme expectations, ultimately making this round of investment "almost like being in a casino". Ha SeokKeun, Chief Investment Officer of Eugene Asset Management, stated that investors are concerned about whether this semiconductor uptrend cycle can continue into 2028 and beyond, and this uncertainty will continue to suppress the valuation of Korean chip stocks. After Samsung announced its record breaking performance last week, its stock price has not yet received a significant boost, indicating that the market's focus has shifted towards growth sustainability. The previous strong rise in the South Korean stock market was highly dependent on Samsung and SK Hynix, and now it is under more concentrated adjustment pressure as a result. KOSPI has fallen by about one-third from its June high and has fallen below the 200 day moving average; Since October, foreign investors have sold over $6 billion worth of Korean stocks.