Matthews Korea Active ETF

MKOR

Market cap $134M

MKOR which cut its PM team, has still managed to deliver the goods in a big way since I last covered it (outperformed global and EMs by 3-5x). MKOR still offers high projected earnings growth of 17% at a forward P/E of 8.7x, making it a rare blend of value and growth, and better than EMs and globalmarkets. While MKOR's expense ratio and portfolio churn are higher than passive peers, its diversified top holdings and lower volatility provide a more defensive South Korea exposure.

South Korea's AI and semiconductor strength remains compelling despite recent volatility. Here's how investors can play the opportunity with ETFs.

South Korea's central bank raised its base rate for the first time in three-and-a-half years, joining global peers in tightening monetary policy to counter inflationary pressures fueled by the U.S.-Iran conflict.

Friday, July 10, may have been ordinary for those outside the investment community, but for folks engaged with the market, it marked an opportunity to gain exposure to the second most valuable company in South Korea. On Friday, SK Hynix (SKHY) became available to U.S. investors via the Nasdaq.

The cumulative impact of several different narratives – competition, sustainability, excessive leverage, international outflows- has sapped the Korean market of its upward mobility since clocking up a record high in June.

South Korean shares fell sharply for a third consecutive session on Wednesday, with heavy losses in semiconductor stocks and growing concerns over AI-related valuations dragging the benchmark index into bear market territory. The sharp decline followed an early rebound in the session.

Elevated inflation in the country is likely to strengthen the case for the central bank to tighten monetary policy at its rate-setting meeting later this month.

MKOR hit a new 52-week high after surging 172% from its low, aided by South Korea's chip-driven rally.

South Korea's AI-fueled rally has made it the world's sixth-largest stock market, and the rally may be far from over. Investors may want to keep South Korea ETFs on their radar.

Earnings are the principal driver behind the breathtaking rallies achieved by Korean and Taiwanese benchmark indices in 2026, and Goldman Sachs thinks the market is still underestimating the longevity of the chip cycle.