Chip, chip ... boom? South Korea tech makers join the trillion-dollar club but some fear a short-circuit looms
South Korea's stock market has reached record highs, driven by a massive surge in demand for AI-related semiconductors from companies like SK Hynix and Samsung. However, analysts warn that the market's heavy reliance on these two firms could lead to volatility if the current boom cycle ends.
Why it matters
The concentration of market value in a few chipmakers highlights the global economic dependency on the AI hardware supply chain.
South Korea's Kospi stock market jumps past 8,000-point milestone on 26 May 2026. The rise is due to a ‘once-in-a-generation surge’ in chips, for AI use, and semiconductor earnings. Photograph: YONHAP/EPA View image in fullscreen South Korea's Kospi stock market jumps past 8,000-point milestone on 26 May 2026. The rise is due to a ‘once-in-a-generation surge’ in chips, for AI use, and semiconductor earnings. Photograph: YONHAP/EPA South Korea Chip, chip ... boom? South Korea tech makers join the trillion-dollar club but some fear a short-circuit looms South Korea’s Kospi stock market has hit record highs thanks to AI, but experts urge caution over boom-bust cycles and a heavy reliance on two chipmakers
The article balances the positive market performance with expert warnings about potential risks, maintaining a balanced perspective.
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