South Korea Daily Briefing

📈 EWY surges +4.62% — Korea-US 8-reactor nuclear deal, semiconductor resilience, and Jensen Huang's AGI declaration drive KOSPI's strongest Monday session

South Korean equities posted one of their strongest single-session gains of 2026, with iShares MSCI Korea ETF surging 4.619% to $188.90, as three thematic catalysts converged: a government announcement that Korea is pursuing construction of eight large nuclear reactors for the United States, the continued validation of Korea's semiconductor cycle as AI demand remains structurally intact, and Nvidia CEO Jensen Huang's declaration that the AGI era has arrived — a direct demand-pull narrative for SK Hynix's HBM and Samsung's DRAM capacity. Financial sector ADRs diverged, with Woori Financial (-3.21%), KB Financial (-2.80%), and Shinhan (-2.57%) falling — a likely currency translation effect as a strengthening KRW compressed USD-denominated ADR prices rather than reflecting fundamental deterioration. Domestic investor confidence is robust: South Korea's National Growth Fund sold out within a single trading day when its second tranche launched in September, reflecting retail appetite that analysts say is underappreciated in foreign coverage. However, structural risks are materialising beneath the surface: Korea's projected 3% GDP growth masks severe domestic demand weakness and dangerous industrial concentration — semiconductor exports account for a disproportionate share of headline growth while services, construction, and domestic consumption lag. Agricultural commodity ETFs strengthened on US-Iran hostility and elevated oil prices, adding an inflationary tilt that the Bank of Korea must now weigh against its growth-support mandate.