South Korea’s semiconductor-driven export surge remains the dominant factor shaping EWY sentiment, with the IMF lifting its 2026 GDP growth forecast to 3.3% on October 13—up 0.7 percentage points—citing AI-related chip demand that more than offset Middle East tensions. The ETF, which allocates over 52% to information technology including SK Hynix and Samsung Electronics, closed near $166.56 on October 13 after a 2-3% daily decline and roughly 10% weekly drop from earlier levels above $186. Heavy foreign outflows and profit-taking have pressured valuations despite record September chip shipments exceeding $60 billion, leaving traders focused on whether sustained AI hardware demand or potential demand slowdowns will set the tone for resolution thresholds in the week of October 12.