The iShares MSCI South Korea ETF (EWY) surged 5.01% during intraday trading on Wednesday, reflecting a broader rally in South Korean equities.

This movement aligns with the strong performance of the South Korean stock market, which has been driven by multiple factors. The AI boom has ignited a memory chip "super-cycle," benefiting heavyweight semiconductor companies like Samsung Electronics and SK Hynix, key components of the Korean market. Strong demand for AI-related memory products such as HBM, server DDR5, and enterprise SSDs has tightened supply and driven prices higher, significantly boosting the earnings of these market leaders.

Additionally, market reforms under the Lee Jae-myung administration, including the "Corporate Value-up Program" and "Foreign Investment Access Reform," are systematically improving corporate governance, enhancing shareholder returns, and attracting global capital back to South Korean equities. These factors are steadily addressing the long-standing "Korea discount" and supporting the market's upward trajectory, with institutions like Goldman Sachs raising their KOSPI target.