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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.

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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

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