Temasek May Make First Direct Investment in Korean Stocks, Targeting Samsung and SK Hynix, Driving KOSPI Surge

Shares of Samsung Electronics and SK Hynix surged on Wednesday (12th) after local media reported that Temasek, Singapore's sovereign wealth fund, is considering investing in the two memory chip giants.

If confirmed, this would mark Temasek’s first direct foray into the South Korean stock market, drawing significant attention from the financial sector. Both Samsung and SK Hynix saw their share prices jump over 7% to 8% during trading, pushing South Korea’s KOSPI index up by more than 4%.

South Korean media reported that Temasek has already engaged with relevant government departments and regulatory bodies to assess the optimal timing for investment. The fund believes that memory chips are currently undervalued within the broader AI supply chain value chain. Despite strong projected performance for both Samsung and SK Hynix in 2026, with share gains exceeding 100%, Temasek remains confident in their continued upside potential.

Temasek plans to execute this investment using its internal team rather than outsourcing to external asset managers, signaling strong conviction in the sector. The fund views AI semiconductors as a long-term structural growth driver, not a short-term trend.

According to reports, Temasek aims to increase the share of AI-related investments in its overall portfolio from the current 6% to 15% over the next five years.

Temasek already holds stakes in semiconductor giants such as NVIDIA (NVDA-US), TSMC (TSM-US) (2330-TW), and ASML (ASML-US), and has invested in AI developers including OpenAI and Anthropic.

As of March 31, 2024, Temasek managed net assets of S$518 billion (approximately $404.5 billion), making it one of the world’s largest sovereign investment institutions.