The Korean KSPI experienced an extremely volatile start to March falling ~20% at its worst last week coming under pressure on several fronts, having previously benefited from the rebound in memory pricing and strong AI-driven demand for high-bandwidth memory (HBM) used in data centres. After a parabolic rally since mid-2025, the Korean market was ripe for profit-taking, similar to the sharp reversal seen in gold and silver earlier this year, with the pullback amplified by weakness in global memory chip stocks such as Samsung Electronics and SK Hynix, while surging oil prices added further pressure on the energy-import-dependent economy.
- Its not for the fainthearted but if we see a panic spike under the psychological 5000 area in the coming weeks we believe it will provide an excellent risk/reward opportunity to buy into the semiconductor industry – the US-traded EWY ETF is one way to gain exposure to the KOSPI.
MM is bullish towards the KOSPI around 5000
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