Samsung, SK Hynix and Leveraged ETFs Drive 70% of Korea Trading - Bloomberg

Bloomberg reports that South Korean market activity surged 70% driven primarily by Samsung Electronics, SK Hynix, and leveraged exchange-traded funds (ETFs). This trend underscores Korea's central rol... Read original →

The 70% surge in Korean equity turnover stems not from sudden fundamentals but from strategic positioning by Samsung and SK Hynix in the AI memory race, triggering capital repricing. Technologically, HBM3E/HBM4 ramp-up is reshaping EDA tool demand, advanced packaging, and CoWoS capacity allocation—with TSMC’s Taiwan, China fabs becoming the critical bottleneck for Korean delivery commitments. Regulatory pressures from U.S.-led export controls are forcing SK Hynix to downgrade its Xi’an fab, raising operational costs by 15–20%. Micron is exploiting this to lobby for stricter scrutiny of Korean subsidies, while Yangtze Memory accelerates NAND share gains in mid-to-low tiers. Over the next 18 months, leveraged ETF activity will amplify KOSPI volatility—but if HBM yields exceed 90%, Korea’s chipmakers could emerge as the most reliable beneficiaries of global AI infrastructure build-out.