Global funds rushing to stake claims in South Korean chip stocks causes an abnormal movement in the ETF market.

The global surge in funds towards South Korean semiconductor manufacturers' high valuation stocks is causing abnormal fluctuations and a surge in trading volume in related ETFs. On Thursday, the iShares MSCI South Korea ETF, listed in the US, saw a record single-day trading volume of $6.4 billion. South Korean semiconductor ETFs also saw an increase in trading volume on the Hong Kong Stock Exchange, while the trading of the China-South Korea semiconductor ETF fund on the A-share market was suspended on Friday due to a surge in premium trading. These abnormal phenomena indicate the broad demand from global investors for South Korean semiconductor stocks, which are among the hottest stocks traded. The South Korean KOSPI index has risen by 50% this year, mainly due to investors rushing to buy stocks of Samsung Electronics and SK Hynix, the two major beneficiaries in the AI sector. These two companies account for nearly half of the weight in iShares South Korea ETF, which has risen by 55% this year. In comparison, the S&P 500 index has risen by less than 1% and the Philadelphia Semiconductor Index has risen by 16%.