South Korea-focused ETFs closed broadly higher in late trading. At the time of writing, Asia Semiconductor (03319) rose 2.75% to HK$164.3, while Southern Hong Kong Korea Technology (03431) gained 2.72% to HK$10.56. Global X TR Korea (02848) climbed 2.35% to HK$1,853.5, and Samsung Global Semiconductor (03132) advanced 2.02% to HK$60.5. Market reports indicate that driven by strong demand for AI chips, South Korea's stock market capitalization has surpassed Canada's, ranking as the seventh-largest globally. The report highlighted that chip giants Samsung and SK Hynix account for 45% of the weighting in South Korea's stock index. Benefiting from the semiconductor boom, the country's market cap has overtaken major European markets like the UK and France. As a result, the Korea Composite Stock Price Index has surged more than 70% year-to-date, while Canada's S&P/TSX index, dominated by resource and financial stocks, has risen only 7%. In its latest research report, Citi raised its target for the Kospi index from 7,000 to 8,500 points, citing potential earnings growth in the semiconductor sector, fiscal stimulus, and government efforts to enhance corporate value. Citi noted that GDP growth, fueled by the semiconductor industry's strong performance, along with improved fundamentals in South Korea's manufacturing sector, is expected to drive a 177% year-on-year increase in net profit for fiscal year 2026. The bank also stated that South Korean memory chip suppliers are likely to benefit from customization trends and extended cycles through long-term chip supply agreements.