Korea Tech Daily — 2026-08-28

Top Story

Samsung and SK Hynix Surge on Nvidia Results

On August 27, South Korea’s benchmark KOSPI index opened 2.76% higher, driven by a sharp rally in chipmakers Samsung Electronics and SK Hynix. The surge was triggered by Nvidia’s latest earnings beat and its warning regarding memory shortages extending through fiscal year 2028. This news has intensified the AI trade momentum in Seoul, pushing the KOSPI closer to the psychological milestone of 7,000 points.

Samsung · SK Hynix · LG

• Share Buybacks Lift KOSPI: On August 26, the KOSPI index rose 1% despite foreign selling pressure, aided significantly by share buyback programs from Samsung Electronics and SK Hynix. These corporate actions helped stabilize the market before the subsequent rally on August 27.
• Wealthy Investors Rotate Portfolios: Recent data indicates that wealthy South Korean investors are cutting holdings in internet platforms Naver Corp. and Kakao Corp., while increasing exposure to hardware giants Samsung Electronics and SK Hynix. This shift reflects growing confidence in the semiconductor cycle over platform growth stocks.
• Nvidia Supply Chain Implications: With Nvidia warning of memory shortages through fiscal 2028, SK Hynix is positioned to benefit from increased demand for High Bandwidth Memory (HBM), while Samsung seeks to expand its share in the AI chip supply chain. The market reaction underscores the deep interdependence between US AI leaders and Korean memory manufacturers.

Naver · Kakao · LINE

• Strategic Divergence in AI Infrastructure: While specific updates from Naver and Kakao in the last 24 hours are limited, recent reports highlight a strategic divergence where Naver focuses on "AI Factory" infrastructure partnerships with Nvidia and Brookfield, whereas Kakao opts out of large-scale infrastructure races to focus on popularizing AI services. This context explains the recent portfolio shifts observed among wealthy investors.
• Investor Outflows Continue: As noted in the Samsung/SK section, wealthy investors have been reducing stakes in Naver and Kakao. This trend suggests that despite their AI initiatives, the market currently favors the tangible earnings visibility of chipmakers over the long-term infrastructure bets of platform companies.

Startups & Investment

• Record Venture Investment in H1 2026: South Korea’s venture investment reached a record 8.87 trillion won ($6.34 billion) in the first half of 2026, marking a 54.3% year-over-year increase. The surge was driven primarily by mega-rounds in AI, semiconductors, and robotics startups.
• AI and Chips Dominate Funding: Data shows that the recovery in startup funding is uneven, with a handful of mega-rounds masking broader trends. Early-stage startups and regions beyond Seoul are seeing gains, but capital remains heavily concentrated in AI and bio-tech sectors, reflecting government policy priorities and private sector interest.

Policy & Industry

• Sovereign Wealth Fund AI Mandate Expansion: Following recent market volatility, South Korea plans to inject 20 trillion won ($13.9 billion) into its sovereign wealth fund for strategic investments in AI, data centers, and infrastructure. This move expands the fund's mandate to include domestic assets for the first time, aiming to stabilize the tech sector and boost national competitiveness. (Note: While announced in July, this policy continues to shape current industry sentiment and investment flows discussed in late August reports).

What to Watch

• KOSPI 7,000 Breakout: Monitor whether the KOSPI can sustainably break and hold above 7,000, which would signal a major sentiment shift for Korean equities.
• Memory Shortage Impact: Watch for further details from Nvidia and other AI chipmakers regarding memory shortages; this will directly impact SK Hynix and Samsung's production schedules and pricing power.
• Naver/Kakao Response: Look for upcoming announcements from Naver or Kakao addressing investor concerns about ROI on AI infrastructure vs. service-layer strategies, especially given recent portfolio rotations.