Huatai Securities: Semiconductor-related companies account for about half of the total market value in the South Korean stock market; recurring global AI narratives may increase the volatility of South Korean stocks.

Golden Ten Data, May 15 — According to a research report by Huatai Securities, the cyclical recovery of the South Korean economy in 2026, improvements in listed company governance, and the appreciation of the Korean won are all expected to drive asset price prosperity. As South Korea’s nominal GDP growth rate jumps in 2026, the profits of South Korean listed companies are expected to rebound significantly. Although the Bank of Korea may implement a slight interest rate hike, monetary policy may still lag behind the economic cycle. The decline in real interest rates, together with a rebound in nominal growth, will continue to benefit the performance of risk assets. Meanwhile, improvements in corporate governance among listed South Korean companies are likely to continue. In addition, the appreciation of the Korean won will help attract foreign currency inflows and boost liquidity in the South Korean market. It is worth noting that, since South Korean semiconductor-related companies account for about half of the total market capitalization, repeated global AI narratives may increase fluctuations in the South Korean market.