Exchange-traded funds tracking South Korean stocks are extending their gains.

As of the latest trade, the CSOP HSCEI Daily (2x) Leveraged product surged 70.9% to 43.34 Hong Kong dollars, while the CSOP KOSPI 200 Daily (2x) Leveraged product jumped 58.54% to 82.28 Hong Kong dollars. Additionally, the TR Korea ETF rose 20.35% to 1,700 Hong Kong dollars, and the CSOP Hong Kong-Korea Tech ETF gained 10.44% to 9.895 Hong Kong dollars.

On the news front, South Korea's stock market is experiencing a historic rebound today, fueled by a sharp rally in U.S. stocks overnight, along with the government's plan to inject capital into its sovereign wealth fund and a series of emergency rescue measures. The Korea Composite Stock Price Index surged over 18%, marking its largest single-day gain on record.

In individual stocks, SK Hynix shares surged 30% in Seoul, hitting the daily limit, while Samsung Electronics jumped more than 26%.

According to reports, the South Korean government announced a 20 trillion won injection into the Korea Investment Corporation, its sovereign wealth fund, specifically targeting investments in artificial intelligence, data centers, and infrastructure. For the first time, domestic assets will be included in the fund's investment scope.

Notably, analysts suggest that this AI-driven rally is being triggered by a series of events: SK Hynix Chairman Chey Tae-won buying additional shares of the company; Microsoft and Amazon's latest earnings reports confirming that major tech firms' heavy AI investments are entering a return phase; and the liquidation of a highly leveraged AI-focused hedge fund, Situational Awareness, which is seen as a sign that the AI trade has bottomed out on Wall Street.