Abstract financial chart featuring blue and purple lines.
Public Equities

Re-Rating Korea: A Structural Case

July 2026 – 6 min read

Korean equities have rallied strongly since 2025, driven by AI and advanced technology demand that has lifted earnings expectations, particularly for semiconductor leaders. Beyond tech, improving governance, shareholder-friendly reforms, and broader opportunities support the investment case.

Technology Leadership in an AI-Driven World

A Market at the Core of Global Innovation

Korea occupies a strategic position in the global technology ecosystem, underpinned by its leadership in memory semiconductors. Samsung Electronics and SK Hynix remain dominant players, and as of last year the two companies together accounted for roughly 70% and 50% of global DRAM (Dynamic Random Access Memory) and NAND (NAND Flash Memory) revenue, respectively.  These technologies are fundamental to AI-driven computing, with DRAM enabling high-speed processing and NAND supporting large-scale data storage.
 
As cloud infrastructure, hyperscaler investment and data-intensive AI workloads continue to scale, demand for memory is becoming increasingly structural rather than cyclical. In the emerging era of agentic AI, the importance of memory is growing, as it enables systems to retain context, leverage prior interactions and support more coherent multi-step reasoning and decision-making. This is particularly evident in high-bandwidth memory, where rising memory intensity per server is driving demand for more advanced solutions. As a result, memory is becoming less tied to traditional end markets such as PCs and smartphones and more central to the long-term buildout of AI infrastructure. This shift is improving earnings visibility and reinforcing Korea’s role in the AI value chain.

At the same time, the commercial profile of the memory market is evolving. Tighter supply conditions, longer-term customer agreements and increased AI-related content are contributing to a more durable demand backdrop and improved pricing visibility for leading suppliers.

26-5642432

Want to read the full article?

View PDF
Headshot of Eunice Hong smiling at the camera.

Eunice Hong

Managing Director
Headshot of Julie Lee smiling at the camera.

Julie Lee

Investment Manager, Asian Equities

Peggy Chen, CFA

Director, Client Portfolio Manager, Equities

Forecasts in this document reflect Barings’ market views as of the preparation date and may change without notice. Projections are not guarantees of future performance. Investments involve risk, including potential loss of principal. The value of investments and any income may fluctuate and are not guaranteed by Barings or any other party. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Examples, portfolio compositions, and investment results shown are for illustrative purposes only and do not predict future outcomes. Actual investments may differ significantly in size, composition, and risk. No assurance is given that any investment will be profitable or avoid losses. Currency exchange rate fluctuations may impact investment value. Prospective investors should consult the offering documents for detailed information and specific risk factors related to any Fund/Strategy mentioned.

Barings is the brand name for the worldwide asset management and associated businesses of Barings LLC and its global affiliates. Barings Securities LLC, Barings (U.K.) Limited, Barings Australia Pty Ltd, Barings Japan Limited, Baring Asset Management Limited, Baring International Investment Limited, Baring Fund Managers Limited, Baring International Fund Managers (Ireland) Limited, Baring Asset Management (Asia) Limited, Baring SICE (Taiwan) Limited, Baring Asset Management Switzerland Sarl, Baring Asset Management Korea Limited, and Barings Singapore Pte. Ltd. each are affiliated financial service companies owned by Barings LLC (each, individually, an “Affiliate”). Some Affiliates may act as an introducer or distributor of the products and services of some others and may be paid a fee for doing so.

NO OFFER: The document is for informational purposes only and is not an offer or solicitation for the purchase or sale of any financial instrument or service in any jurisdiction. The material herein was prepared without any consideration of the investment objectives, financial situation or particular needs of anyone who may receive it. This document is not, and must not be treated as, investment advice, an investment recommendation, investment research, or a recommendation about the suitability or appropriateness of any security, commodity, investment, or particular investment strategy, and must not be construed as a projection or prediction.

Unless otherwise mentioned, the views contained in this document are those of Barings. These views are made in good faith in relation to the facts known at the time of preparation and are subject to change without notice. Individual portfolio management teams may hold different views than the views expressed herein and may make different investment decisions for different clients. Parts of this document may be based on information received from sources we believe to be reliable. Although every effort is taken to ensure that the information contained in this document is accurate, Barings makes no representation or warranty, express or implied, regarding the accuracy, completeness or adequacy of the information.

Any service, security, investment or product outlined in this document may not be suitable for a prospective investor or available in their jurisdiction.

Copyright and Trademark
Copyright © 2026 Barings. Information in this document may be used for your own personal use, but may not be altered, reproduced or distributed without Barings’ consent.

The BARINGS name and logo design are trademarks of Barings and are registered in U.S. Patent and Trademark Office and in other countries around the world. All rights are reserved.

Related Viewpoints