What makes South Korean stocks unique investment opportunities?

South Korean stocks offer exposure to a highly advanced economy focused on technology and exports. The country is home to global leaders in semiconductors, displays, telecommunications, and electronics manufacturing. Korean companies often have significant global market share in their industries and are known for high R&D investment and innovation, particularly in emerging technologies like electric vehicle components and advanced displays.

Why are semiconductors so important to South Korea's economy?

Semiconductors are critical to South Korea's economy as they represent one of the country's largest export categories. South Korean companies are among the world's largest manufacturers of memory chips and other semiconductor components used in everything from smartphones to data centers. This industry provides South Korea with a strategic position in global technology supply chains and contributes significantly to the nation's economic growth and trade surplus.

What is an ETF and why are there several Korean ones in this group?

An ETF (Exchange Traded Fund) is an investment fund traded on stock exchanges that holds assets like stocks, bonds, or commodities. The Korean ETFs in this group (like EWY, FLKR, and KORU) offer different ways to gain broad exposure to the South Korean market without having to buy individual stocks. They track various Korean market indexes and provide diversification across multiple Korean companies in a single investment, making them convenient options for investors wanting exposure to the broader South Korean economy.

What does "leveraged ETF" mean when referring to KORU?

A leveraged ETF like KORU aims to deliver multiples of the performance of the index it tracks. KORU specifically seeks to provide 300% of the daily returns of the MSCI Korea 25-50 Index. This means if the index goes up 1% in a day, KORU aims to go up about 3%. However, this amplification works in both directions—if the index falls 1%, KORU could fall about 3%. Leveraged ETFs are typically designed for short-term trading rather than long-term holding due to a mathematical effect called "volatility decay" that can erode returns over longer periods.

How might dividend yield and payment dates affect investment decisions?

Dividend yield shows the annual dividend payout relative to a stock's price (for example, a 3% yield means $3 in dividends annually per $100 invested). Investors seeking regular income often consider stocks with higher, sustainable yields. Dividend payment dates tell you when to expect these payments, which can be important for cash flow planning. Some investors practice "dividend timing" strategies, buying shares before ex-dividend dates to receive upcoming payments. In the Korean stock context, companies like KEP (Korea Electric Power) may offer dividends as part of their value proposition to investors.

14 handpicked stocks

Best Korean Stocks

This collection brings together South Korea's most influential technology and industrial powerhouses, carefully selected by our analysts. Gain exposure to the innovative companies driving this export-focused economy, from semiconductors to telecommunications.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

SK Telecom Co. Ltd.

SKM

Current price

$21.73

SK Telecom is a leading wireless telecommunications operator in South Korea, central to the nation's advanced digital infrastructure.

Taiwan Semiconductor Manufacturing Co.

TSM

Current price

$288.11

As the world's largest dedicated semiconductor foundry, it is a critical supplier to South Korea's leading electronics manufacturers.

KLA-Tencor Corporation

KLAC

Current price

$1,139.26

A key supplier of process control and yield management systems, its technology is integral to the success of South Korea's world-class semiconductor f...

A key supplier of process control and yield management systems, its technology is integral to the success of South Korea's world-class semiconductor fabrication plants.

LG Display Co., Ltd.

LPL

Current price

$5.37

South Korea MSCI Capped ETF iShares

EWY

Current price

$83.53

KT Corp.

Current price

$19.88

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About This Group of Stocks

Our Expert Thinking

This collection offers direct investment in South Korea's technological innovation hub. We've focused on companies leading the country's export-driven growth in critical sectors like semiconductors, consumer electronics, and automotive manufacturing—all areas where Korean firms hold significant global influence.

What You Need to Know

These stocks represent established, globally competitive companies with strong market positions and innovation track records. They provide targeted exposure to a key Asian market known for technological advancement. Many of these firms are central to worldwide supply chains for essential tech components.

Why These Stocks

Our analysts selected these companies for their market leadership in South Korea's advanced economy. They're positioned to benefit from major growth catalysts like the global semiconductor demand surge, 5G rollout, and electric vehicle adoption—all areas where Korean innovation excels.

Group Performance Snapshot

9 of 14

Stocks Rated Buy by Analysts

9 of 14 assets in this group are rated Buy by professional analysts.

10.9% vs 4%

Group Growth vs Bank interest

This group averaged a 10.9% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔋

Powering Tomorrow's Tech

Korean companies are at the heart of global technology supply chains, making everything from the memory chips in your devices to the batteries in electric vehicles. Their innovation sets worldwide standards.

🚀

Export Powerhouse Potential

With South Korea's economy built on exports, these companies have mastered global competitiveness. They're positioned to capture growth from increasing worldwide demand for advanced technology.

💡

Innovation You Might Be Missing

While everyone talks about US and Chinese tech, South Korea quietly leads in critical technologies like displays, semiconductors, and batteries. These stocks offer exposure to innovation that flies under most investors' radar.

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