Strike Paralyses SK Hynix's Mega-Project as Volatile Market Tests 210% Rally

SK Hynix stock surges 210% on AI demand, but a truckers strike halts construction of its flagship Yongin complex amid a violent Korean market sell-off.

SK Hynix finds itself caught between two powerful forces. Its stock has surged more than 210% since January, riding the unrelenting wave of AI-driven demand for high-performance memory. Yet behind the headline gains, a concrete truckers' strike has brought construction of its flagship Yongin semiconductor complex to a standstill, while a violent sell-off in the broader Korean market has the shares swinging wildly.

The shares closed Thursday at around 2.1 million won, up nearly 3% on the day. That bounce followed a brutal Wednesday session in which the stock plunged as much as 7% intraday. The KOSPI index came under such intense pressure that the exchange triggered multiple trading halts. Foreign investors have offloaded Korean equities for 23 consecutive sessions, pulling out billions of dollars.

The transport union's walkout is now in full swing. It is demanding higher freight rates for ready-mix concrete, and a proposed compromise was rejected by almost 70% of members. Less than 10% of normal concrete volumes are currently reaching the capital region. The disruption hits SK Hynix at a critical moment: it is building four advanced chip fabrication plants in Yongin. CEO Chey Tae-won aims to double production capacity within five years and triple it by 2034. The first phase must go live next year. Samsung's nearby Pyeongtaek campus is also affected by the concrete shortage.

On top of the construction freeze, equipment suppliers are asking for price increases of up to 4%, adding cost pressure to the multi-billion-dollar expansion. Yet investors appear unruffled. SK Hynix controls roughly one-third of the global DRAM market and dominates the high-bandwidth memory segment essential for artificial intelligence. A multi-year development partnership with Nvidia, covering next-generation memory modules for the US company's new supercomputers, cements its technological edge.

The market's nervousness, however, is impossible to ignore. Analyst Yang Hyung-mo of DS Investment & Securities warns that a fundamental correction is a real risk if earnings forecasts begin to slip. The stock currently trades 36% above its 50-day moving average, and annualised volatility has topped 100%. If the 2 million won support level gives way, a rapid slide toward lower chart supports could follow. For now, the AI narrative keeps the rally alive, but the strike and market jitters are testing the patience of even the most bullish shareholders.