South Korean stock markets opened lower this morning but quickly recovered, with losses narrowing significantly. Exchange-traded funds tracking the Korean market saw a notable rebound in early trading.

As of the latest update, the CSOP 2x Long Samsung ETF (07747) rose 17.41%, trading at HK$78.9. The CSOP 2x Long SK hynix ETF (07709) increased by 14.51%, reaching HK$51.3. The TR Korea ETF (02848) advanced 4.11% to HK$1608.5, while the CSOP Hang Seng Korea Tech ETF (03431) gained 4.08%, priced at HK$9.705.

This market movement follows recent policy announcements from the South Korean Ministry of Finance. On Sunday, the ministry stated plans to permit foreign financial institutions to borrow Korean won through temporary overdrafts and to use won-denominated bonds as collateral in financial transactions. These measures are part of incentive policies designed to promote the use of the Korean won, aiming to transform it from a restricted domestic currency into a more globally accessible one.

Furthermore, since July 6th, South Korea has extended trading hours for the USD/KRW market to a 24-hour system, marking a significant step in opening up its historically closed currency market.

In related industry news, SK hynix Chairman Chey Tae-won spoke at the Korea Chamber of Commerce and Industry's Jeju Forum. He projected that demand for AI semiconductors next year is expected to grow by 60% to 100% year-on-year, with overall memory chip demand also anticipated to increase by 50% to 60%.

Simultaneously, he noted that major manufacturers have almost no substantial capacity expansion plans for next year, which will inevitably widen the supply-demand gap. He remarked that the intensity of global competition for memory supply is such that it "must be described as panic."