South Korea is emerging as one of the strongest AI plays outside the United States. Semiconductor strength & AI optimism are driving KOSPI and South Korea ETFs.
South Korea's Kospi Index crashed by over 6% today, May 15, as the recent rally took a breather and investors started to book profits. After crossing the key resistance at 8,000 this week, it plunged to 7,585.
The iShares MSCI South Korea ETF (NYSEARCA:EWY | EWY Price Prediction) is up 80% year-to-date and about 200% over the past year, which is not what a country fund is supposed to do, especially one that spent a decade as the poster child for the “Korea discount.
A top South Korean official has proposed a tax on AI profits to be redistributed among society as a semiconductor boom drives massive earnings for tech giants Samsung Electronics and SK hynix.
Despite a downward trend for several weeks at the beginning of the year, in spring 2026 the S&P 500 has once again shot upward, achieving fresh new all-time highs in the process. Still, even the most bullish investors may be wondering how long the trend can continue, given the prolonged war in Iran and its impacts on the global oil market—not to mention preexisting factors like inflation, aggressive interest rate hikes, and more.
Memory chip makers used to be cyclical and risky to enter after explosive upside runs.
South Korea's exports continued to surge in April, led by semiconductor shipments, suggesting the trade-dependent economy remains resilient despite risks from the Middle East conflict.
The primary factors behind the strength of the Korean market is the boom in the market for high-end memory chips used by AI developers
EWY hits a 52-week high, soaring 183% from its low as South Korea's chip-driven market rally boosts momentum and signals potential near-term upside.
The inverse relationship between oil prices and stock prices broke today.
South Korea ETFs like EWY rally as KOSPI hits record highs, fueled by AI-driven semiconductor demand and strong foreign inflows.
South Korea ETFs at a crossroads -- chip-led rebound meets geopolitical risk as AI optimism clashes with Iran war uncertainty.