**EWY, the iShares MSCI South Korea ETF, has delivered strong 2026 gains—up roughly 64% year-to-date through mid-October—driven primarily by semiconductor exposure to Samsung Electronics and SK Hynix, which together comprise nearly half the fund.** Robust AI-related chip demand fueled record exports, prompting the IMF to lift its 2026 Korea GDP growth forecast to 3.3% on October 13, citing external demand that more than offsets Middle East tensions. However, the ETF has pulled back sharply in October, trading near $160 after hitting a 52-week high above $220 in June, with recent sessions showing 4%+ daily declines amid profit-taking and KOSPI weakness. Key near-term influences include ongoing semiconductor cycle momentum, global tech spending trends, KRW movements, and any shifts in AI investment or geopolitical developments.