South Korea-focused ETFs are trading higher, driven by strong moves in semiconductor stocks. The Samsung Electronics 2x leveraged ETF (07747) surged 13.12% to 74.3 Hong Kong dollars, while the SK hynix daily leverage product (07709) advanced 10.46% to 31.04 Hong Kong dollars. The TR Korea ETF (02848) climbed 6.65% to 1,765 Hong Kong dollars, and the Southern KOSPI ETF (03121) rose 4.38% to 6.075 Hong Kong dollars.

On August 12, the South Korean stock market opened higher and extended gains, triggering circuit breakers. Shares of SK hynix and Samsung Electronics each rose more than 8% at one point. Reports indicate that Singapore's sovereign wealth fund, Temasek, is planning its first direct investment in the South Korean stock market, intending to allocate its own capital to build positions in Samsung Electronics and SK hynix. Temasek has identified memory chips as the most undervalued segment within the AI value chain and aims to increase AI-related assets to 15% of its portfolio over the next five years.

Notably, earlier reports revealed that SK hynix has resumed construction of its second NAND flash memory production plant in Dalian, China, with plans to expand capacity by approximately 50%. Separately, data released Tuesday by the Korea Customs Service showed that South Korea's export value surged 45.3% year-on-year during the August 1-10 period, driven by robust global demand for memory chips. Total exports reached $21.3 billion, compared to $14.6 billion in the same period last year, marking a record high for the first 10 days of August.