Korean Equities Break Records as Semiconductor Exports Surge and Nvidia Confirms HBM4 Partnerships

South Korean equities broke successive record levels last week, with the KOSPI closing at 8,788 — up 3.68% — as record semiconductor export data and Nvidia CEO Jensen Huang’s keynote address in Taipei drove outsized gains across the country’s largest technology companies. European-listed ETFs tracking Korean equities posted weekly gains of between 4.67% and 9.72%.

Record Exports and an Nvidia Catalyst

May trade data showed South Korean exports reaching $87.75 billion, up 53.2% year-on-year and the highest monthly figure on record. Semiconductor exports were the standout, surging 169.4%. On the same day, Nvidia’s Jensen Huang confirmed at GTC Taipei that the Vera Rubin chip is in full production, equipped with HBM4 memory from SK Hynix, Samsung Electronics and Micron. The combination sent the KOSPI through 8,500, 8,600, 8,700 and 8,800 in rapid succession, triggering the exchange’s 11th buy sidecar of the year.

Samsung Electronics gained 10% on the session, with preferred shares rising 13%, as its market capitalisation crossed ₩2,000 trillion won — a first for any single South Korean stock. Anticipation of Huang’s wider visit to Korea also lifted LG Electronics, LG, NAVER, Doosan, and Hyundai Motor on partnership and AI momentum. Institutionally, net buying reached 2.585 trillion won, while foreign investors were net sellers of more than 3 trillion won.

In contrast, the KOSDAQ closed down 2.30% at 1,050.03, with its advance-decline ratio falling below 50%, reflecting the degree to which gains remained concentrated in large-cap names.

Bull Market in Context

The latest move extends a rally that has taken the KOSPI from a 2022 trough of 2,132 to the 8,400–8,800 range — a gain of approximately 295%. The index is up around 100% year-to-date and more than 200% over the past 12 months, driven by Samsung Electronics (+163% YTD, +465% over 12 months), SK Hynix (+258% YTD, +~1,000% over 12 months), and LG Electronics, which reached a record 293,000 won partly on a new Google partnership.

European ETF Performance

The six European-listed Korean equity ETFs collectively gained 8.47% for the week, with $7.59 billion in combined AuM and $143 million in net weekly inflows. Franklin FTSE Korea UCITS ETF (FLXK) led with a 9.72% weekly gain and 113.07% year-to-date return, attracting $155.8 million in weekly inflows — the highest in the group — and $477.6 million year-to-date. The two iShares MSCI Korea share classes (IDKO and CSKR) each gained around 8.6% for the week with year-to-date returns above 108%. Xtrackers DBX8 gained 8.50% with $4.8 million in weekly inflows. The Amundi (KRW) and HSBC (HKOD) funds posted more modest weekly gains of around 4.7%, reflecting currency share class differences. HKOD is the only fund in the group with negative year-to-date flows at -$329.5 million, despite a 101.50% year-to-date return.

Group Data

Fund Data

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.