Why it matters. Samsung and SK Hynix are two of the world's largest memory-chip makers, and their dominance of HBM means this Korean rivalry directly shapes the global AI supply chain that powers data centers everywhere.
Background. Samsung Electronics has long been South Korea's most valuable company and the anchor of the country's export-driven economy; SK Hynix, part of the SK Group conglomerate, is the world's other leading memory maker. Korea's economy is unusually concentrated in such family-led conglomerates, known as chaebol, so the fortunes of a few chip firms move national growth figures. The Bank of Korea is the nation's central bank, equivalent to the U.S. Federal Reserve.
What to watch next. Watch whether SK Hynix overtakes Samsung outright and how widely the chip boom's gains spread into the rest of Korea's economy.
A One-Year Reversal in Korea’s Chip Hierarchy
SK Hynix, South Korea’s second-largest chipmaker, has surged to within striking distance of Samsung Electronics as the most valuable company on the Korean stock market, fueled by a global semiconductor boom tied to artificial intelligence. As of May 28, 2026, Samsung’s market value stood at roughly 1,749 trillion won (about $1.27 trillion), while SK Hynix had reached 1,616 trillion won — about 93% of Samsung’s size.
The shift is dramatic. Just a year earlier, on May 1, 2025, SK Hynix was worth only about 39% of Samsung. Over the following twelve months, SK Hynix shares soared roughly 1,190%, far outpacing Samsung’s 440% gain. The result is a near dead heat between Korea’s two largest listed firms.
Why SK Hynix Caught Up
Analysts point to SK Hynix’s early lead in high-bandwidth memory (HBM) — specialized chips that AI processors rely on to move data quickly — as the key driver. The company is also a pure-play chipmaker, so its valuation tracks the semiconductor cycle directly. Samsung, by contrast, spans a far broader portfolio, from smartphones to home appliances, which dilutes the chip boom’s impact on its share price.
With expectations that the semiconductor “super-cycle” will persist, a fierce contest for the No. 1 spot on the Korean market now looks likely to play out between the two rivals.
Concentration Risk, or a Healthy Cycle?
The rapid climb of chip stocks has raised concerns. Critics warn that money piling into a handful of semiconductor names is deepening polarization in the market and could signal a bubble. But proponents argue the concentration is grounded in real earnings cycles rather than speculation — a different phenomenon from a classic bubble.
Crucially, the trend is not unique to Korea. The same pattern is visible in the United States and other major markets, driven by an unusually strong AI investment cycle. So far this year, markets with deep AI and chip foundations — the U.S., South Korea, Taiwan and Japan — have outpaced other major economies.
The Trickle-Down Question
The bigger issue, the source argues, is how the chip upturn feeds the broader economy. The Bank of Korea, the country’s central bank, lifted its growth forecasts in its May revision to 2.6% for this year (up from 2.0%) and 2.1% for next year (up from 1.8%). It also more than doubled its 2026 current-account surplus projection to $250 billion, against $123.1 billion in 2024, and signaled that growth could rise further if the chip boom holds.
While market concentration carries side effects, the strong semiconductor cycle is now an outsized force behind Korea’s economic expansion. The question worth watching, the author concludes, is where the gains from this boom will ultimately flow.
The original commentary was written by Park Sang-hyun, senior analyst at iM Securities.
