AI Demand Buffers South Korean Equities Amid Geopolitical Tensions

South Korean equity markets rebounded on Monday, erasing previous declines sparked by escalating conflict between the US and Iran. The Kospi index surged as much as 1.2%, climbing above the 6,200 level as investors shifted their focus back toward growth drivers. The recovery highlights a strategic shift in investor sentiment, where the perceived long-term growth of artificial intelligence is outweighing immediate geopolitical risks. This pivot has specifically benefited the memory chip sector, which remains central to the global AI infrastructure build-out. Samsung Electronics Co. and SK Hynix Inc. emerged as the primary drivers of the rally. The benchmark Kospi index has demonstrated exceptional strength this year, recording a year-to-date gain of nearly 50%, positioning it as one of the top-performing equity markets globally. The resilience of these chipmakers suggests that the AI trade has become a primary priority for investors, providing a buffer even amidst systemic volatility caused by Middle Eastern instability.