iShares MSCI South Korea ETF gains 101% year-to-date as SK Hynix and Samsung lead AI-driven demand for memory chips.
The iShares MSCI South Korea ETF (EWY) has climbed 101% year-to-date, outpacing the S&P 500 by fivefold, driven by surging demand for memory and semiconductor chips in AI infrastructure. SK Hynix and Samsung dominate high-performance memory (HPM) production, positioning South Korea as a key beneficiary of the AI boom.
Prior to the AI-driven rally, South Korean chipmakers traded at a valuation discount due to Chaebol corporate structures. However, the critical role of DRAM and NAND chips in AI applications has reduced the relevance of this discount, with supply constraints further boosting prices and profitability.
Micron (MU) and Taiwan Semiconductor (TSM) also benefit from the trend, but South Korea’s concentrated market share in memory chips has made EWY a standout performer in 2024.