FLKR ETF hits 52-week high as South Korea exports surge 188%

South Korea's semiconductor-led export boom has propelled the Franklin FTSE South Korea ETF to a new 52-week high, as chip shipments surged 188% in the first 20 days of June.

The Franklin FTSE South Korea ETF (FLKR) reached a new 52-week high Monday, as semiconductor exports surged 188% and SK Hynix overtook Samsung as the country's most valuable company.

"The AI-driven memory boom is rewriting South Korea's corporate hierarchy in real time," said Sarah Lin, equity markets analyst at Edgen. "SK Hynix's ascent from near-bankruptcy to the top spot shows how structural demand for high-bandwidth memory is reshaping the semiconductor landscape."

South Korea's exports hit a record $62 billion in the first 20 days of June, with semiconductor shipments surging 188% from a year earlier, according to Korea Customs Service data. SK Hynix shares rose 5.7% on Monday, lifting its market capitalization to 2,082.5 trillion won ($1.35 trillion) and narrowly surpassing Samsung Electronics at 2,081.3 trillion won — the first time since 2000 that Samsung has been displaced from the top of South Korea's stock market.

The milestone shows how artificial intelligence is redrawing the competitive dynamics of the global semiconductor industry. SK Hynix has established itself as the dominant supplier of high-bandwidth memory chips used alongside Nvidia's AI accelerators, a position that has transformed investor perceptions of the company and driven its shares up more than 340% this year.

From Penny Stock to Market Leader

SK Hynix's rise is among the most dramatic turnarounds in South Korean corporate history. In 2002, the company — then known as Hynix Semiconductor — was struggling under a crushing debt burden and came close to being acquired by US rival Micron Technology. Its shares plunged to as low as 135 won in 2003, earning it a reputation as a penny stock among domestic investors.

The company reported an operating loss of 7.73 trillion won in 2023 as falling memory-chip prices weighed on the industry. Just one year later, as AI-related spending accelerated worldwide, SK Hynix posted a record operating profit of 23.5 trillion won — a striking reversal that reflected the structural shift in demand for advanced memory.

Export Engine Powers Broader Market

The semiconductor export surge has broader implications for South Korea's economy and equity markets. The country's export-dependent economy has benefited from the AI boom, with memory chips accounting for a growing share of total shipments. Samsung Electronics, while losing its top spot by market capitalization, has still seen its shares gain roughly 200% this year, reflecting the sector-wide tailwind.

The FLKR ETF, which tracks the FTSE South Korea Index and holds positions in both SK Hynix and Samsung Electronics, has captured much of that upside. The fund's 52-week high signals strong investor confidence in South Korea's ability to maintain its competitive edge in the global semiconductor supply chain.

This article is for informational purposes only and does not constitute investment advice.