Taiwan and U.S. Stocks Volatile at High Levels; Institutions Eye 'High-Growth, Low-Valuation' Korean Equities

In 2026, global investment in AI infrastructure is set to reach a record high. Although Taiwan and U.S. stock markets have recently rebounded to new highs, foreign investors are already searching for the next profit breakout amid ongoing volatility. Investment trusts point out that the long-undervalued 'South Korean stock market' has become a global funding focus, thanks to an estimated EPS growth rate of 185% and an extremely low P/E ratio of just 8.7x. Dahua Bank Asset Management will launch the 'Dahua Korea KOSPI 50 (009829-TW)' on August 3, helping investors precisely position themselves to benefit from Korea's leading stocks.

Dahua Bank Asset Management's Executive Deputy General Manager, Chang Geng-Hao, emphasized that Korean companies' earnings structure has undergone a qualitative transformation. As high-bandwidth memory (HBM) becomes the core of AI computing power, Korea's memory duopoly, which holds 79% of the global HBM and 68% of the DRAM market, is reaping strong profits. According to Bloomberg's latest forecast, the ranking of the world's top 10 corporate profits in 2026 will see a major reshuffle, with Samsung Electronics ranking second globally and SK Hynix jumping to sixth, with profits approaching those of Apple.

Chang stressed that as of June 2026, the KOSPI 50 Index's estimated EPS growth rate for the next year reached 185%, the highest among major global markets (Taiwan 50 Index at 41%); yet its estimated P/E ratio stands at only 8.7x (Taiwan 50 Index at approximately 23.9x). This massive valuation correction potential created by 'high growth and extremely low valuation' is precisely what is driving international capital and pension funds to position themselves.

Dahua Korea KOSPI 50 ETF Manager, Kuo Hsiu-Cheng, added that Korean equities are currently benefiting from three major catalysts. First, the overseas listing effect: SK Hynix is scheduled to issue ADRs in the U.S. in July 2026, with market expectations of at least a 15% premium correction.

Second, technological breakthroughs: Korean manufacturers have successfully increased HBM4 stacking to 16 layers, and Samsung has secured next-generation AI chip orders from major clients like NVIDIA and Tesla. Third, supercharged policy support: the South Korean government is injecting $1.2 trillion to promote semiconductor clusters and AI data centers, complemented by the 'Corporate Value Enhancement Program' to attract foreign capital.

Kuo noted that over the past 20 to 30 years, Korea has powerfully promoted Korean Wave culture, led by K-POP, globally through strategic government initiatives and flexible private-sector creativity, transforming cultural soft power into a global weapon in entertainment and consumer markets. Now, the Korean government is transferring this successful strategic experience to the high-tech sector, driving future growth momentum with the dual engines of 'soft power and hard technology'.

To help Taiwanese investors precisely capture Korea's leading stocks, Dahua Bank Asset Management will officially launch the 'Dahua Korea KOSPI 50 (009829-TW)' from August 3 to August 7, with an issue price of NT$10 per share.

This fund tracks the KOSPI 50 Index, carefully selecting Korea's top 50 market-cap flagship national team, with information technology (73.26%) as the core, complemented by industrial and financial sectors. The top two weightings are SK Hynix (38.85%) and Samsung Electronics (29.92%), enabling investors to complete the highly explosive AI puzzle of memory and chip manufacturing, beyond Taiwan's wafer and server contract manufacturing.

*Disclaimer: The individual stocks, funds, and futures products mentioned in this article are for reference only and do not constitute investment advice. Investors should make independent judgments, carefully assess risks, and bear their own profits and losses.