AI Demand and Policy Support Brighten Long-Term Outlook for South Korean Chip Stocks
Explosive growth in global demand for AI chips and high-bandwidth memory is making South Korea’s semiconductor industry increasingly strategic to the global supply chain. Chailease Securities Investment Advisory said the South Korean government’s push for special semiconductor legislation and stock-market reforms is providing policy benefits to the country’s technology giants. The industry shift is reshaping the global technology supply chain and offers investors an important avenue into the long-term AI trend, drawing market attention to the medium- and long-term prospects for South Korean equities.
In its latest assessment released in July 2026, Chailease Securities Investment Advisory said South Korean chip leaders SK hynix and Samsung Electronics have strong medium- and long-term growth momentum as they benefit from the AI chip boom. With the government rolling out a 26 trillion won semiconductor support plan and recently stepping up efforts to advance special legislation, the firm advised investors to build positions gradually through regular fixed-amount investments or by adding holdings on market declines to capture the long-term trend.
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The history behind this eventAI Chip Demand Sends Samsung, SK Hynix Shares Soaring as KOSPI Hits Record High
Generative AI has fueled demand for high-bandwidth memory (HBM) and server chips, putting Samsung Electronics and SK Hynix at the center of the global AI supply chain. Hedge funds are bullish on South Korea’s leadership in the memory market, betting that AI investment can continue to generate steady cash flow. Semiconductor stocks have consequently become the main engine driving South Korean equities higher.
Since the start of 2026, shares of Samsung Electronics and SK Hynix have risen 128% and 188%, respectively, helping the KOSPI surge about 80% and break above 8,000 for the first time. As South Korean retail investors chase the rally, margin-financing balances have climbed to 36 trillion won, boosting brokerage interest income while underscoring growing leverage and the rising risk of buying at elevated prices.
South Korean Investors Pivot to AI Chips as Samsung and SK hynix Ride Surging HBM Demand
Generative AI is driving data-center expansion, making high-bandwidth memory, or HBM, a critical GPU component. Young South Korean investors are consequently shifting funds from cryptocurrencies into Samsung Electronics and SK hynix, betting on the companies’ positions in the global memory supply chain. The trend echoes Taiwanese investors’ longstanding enthusiasm for holding TSMC shares.
HBM demand has climbed rapidly in recent months, channeling market funds into Samsung Electronics and SK hynix and driving significant gains in both companies’ shares. The Korea Exchange’s KOSPI also surpassed 6,000 points for the first time, propelled by the AI chip rally and reflecting a clear shift among South Korean retail investors toward the AI hardware supply chain.
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