By Nigam Arora
EWY is long from $48.60. It is trading at $188.28 (as of this writing, when published for Arora Members on June 11th). This represents a gain of 287% for Arora members.
Memory Is The Driver
The primary driver of Korea right now is semiconductor memory.
Two Korean companies, SK Hynix (HXSCL) and Samsung Electronics (SSNLF) are two of the three largest semiconductor memory manufacturers in the world. Korea has become highly leveraged to the global artificial intelligence buildout because AI infrastructure requires massive amounts of high bandwidth memory, DRAM, and NAND flash storage.
The Arora Report analysis shows semiconductor memory continues to be in severe shortage right now, and the shortage is likely to persist through at least the first half of 2027. The bottleneck is not simply demand, but manufacturing complexity, advanced packaging, and yield constraints in leading-edge memory products required for AI servers.
This creates a favorable backdrop for Korea because semiconductor exports remain one of the most important engines of the economy. Memory pricing has been strengthening, margins are improving, and capital spending related to AI infrastructure remains robust.
If at some point memory shortages ease, expect Korea to soften. However, for the time being, the fundamental backdrop continues to favor remaining invested.
Export Jump
South Korean exports jumped 8.6% in the first 10 days of June year over year. More importantly, exports of semiconductor memory chips surged 20.6%, continuing the strong trend tied to AI infrastructure demand. South Korea’s exports were up 86% year over year through the first ten days of June, with chip exports jumping 206% year over year.
Beyond Semiconductors
Beyond semiconductors, Korea remains one of the world’s most important exporters of automobiles, batteries, ships, machinery, petrochemicals, and consumer electronics. Automobile exports continue to be resilient, especially premium vehicles and EV-related supply chains. Battery-related exports remain important, although growth has moderated as the EV market normalizes.
Korea’s export economy remains highly sensitive to global growth, but right now the composition of exports favors technology and AI-linked demand, which is a positive.
A Few Economic Data Points
South Korea is the world’s 13th largest economy with a GDP of roughly $1.8 trillion. GDP growth has remained moderate, inflation has cooled materially from peak levels, and policymakers continue to support strategic technology sectors.
Korea also benefits from strong industrial competitiveness, world-class manufacturing, and dominant positions in semiconductors, displays, batteries, and shipbuilding.
Importantly for investors, Korea often trades at lower valuation multiples than comparable developed markets, partly due to the so called “Korea discount.” This means when fundamentals improve, the upside can sometimes be significant.
SK Hynix U.S. Listing
SK Hynix is planning a U.S. listing of its stock as early as August. This may create additional excitement and potentially drive the Korean market even higher between now and August as global investors focus more attention on Korea’s semiconductor champions.
Zones And Ratings
To see the buy zone and ratings, start a 30 day free trial in ZYX Emerging.
Trade Around Position
There may be an opportunity for a trade around position in the near future.
A trade around position is a technique used by billionaires that can dramatically increase returns while lowering risk.
Please see Trade Management Guidelines to learn more about trade around positions.
What To Do Now
Those in EWY may consider continuing to hold.
Those not in EWY may patiently wait for a new signal or a new trade around position.
Note: Signal(s) to enter, add, reduce, exit, hold or change.
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This post was just published on June 11, 2026, in ZYX Emerging Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
