The skyrocketing stock prices of Samsung and SK Hynix have triggered a forced fund sale, with a net foreign selling of $58.6 billion year-to-date.

BlockBeats News, May 29th. According to Bloomberg, Samsung Electronics and SK Hynix saw a significant surge in their stock prices, leading some funds to be forced to reduce their holdings due to reaching the single-stock ownership limit. Affected by the 10% single-stock ownership limit, institutions such as GAM Investment Management and Jupiter Asset Management have started adjusting their portfolios to meet diversification requirements. Over the past year, SK Hynix has accumulated a growth of over 1000%, and Samsung Electronics has seen an increase of over 400%, with both companies' market capitalization surpassing $1 trillion.

Data shows that as of Thursday, global investors have net sold $63.6 billion of South Korean stocks this year, with Samsung Electronics and SK Hynix combined seeing a net outflow of $58.6 billion. Goldman Sachs estimates that since last October, approximately $69 billion in sell-offs have been triggered by the relevant ownership limits. Some institutions are beginning to turn to alternative targets to gain semiconductor exposure. For example, SK Square, holding a 20.5% stake in SK Hynix, and Samsung Life Insurance, holding an 8.58% stake in Samsung Electronics, have seen a significant surge in their stock prices over the past year.

Goldman Sachs has stated that if the weighting of Samsung Electronics and SK Hynix in the South Korean stock market continues to rise, they may still face additional selling pressure in the future, but most of the passive unwinding is either completed or nearing its end.