South Korea unveils $13.9B fund as Kospi rebounds on AI, chip optimism
What's the deal? South Korea's Kospi surged on Friday, 31 July 2026, buoyed by a $13.9 billion government strategic fund aimed at accelerating AI and semiconductor development. The benchmark jumped to 6,376.68 by lunchtime, reversing a bruising three-day slide, Reuters reported.
Why now? The rebound followed a punishing week for chipmakers and AI shares that had shaken confidence in the durability of the AI trade. A buoyant Wall Street session and fresh optimism about AI spending — after Microsoft and other large US groups reported rising demand for cloud and data-centre capacity — helped turn sentiment, according to AP.
Who led it? Samsung ElectronicsDealroom has a profile for this one. Try Dealroom → and SK HynixDealroom has a profile for this one. Try Dealroom → drove the turnaround. Samsung rose about 21%, while SK Hynix advanced 24.6%, both opening even stronger. At one point the index was up 16.8% before trimming gains.
What's the endgame? The strategic fund targets South Korea's heavyweight semiconductor and AI sectors, the country's core export engines. The rally reflected a wider reassessment of Korean chip valuations and improving risk sentiment across Asia.
The signal: The swing underscores how tightly South Korea's market is bound to the global AI trade — and how quickly government firepower and US tech momentum can flip sentiment. For investors, the volatility is a reminder that confidence in AI spending remains fragile, even as capital keeps flowing into chips.
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