South Korea ETF (EWY) has faced sharp downside pressure in the week of October 12, 2026, as its heavy concentration in information technology—roughly 53% of assets, led by SK Hynix and Samsung Electronics at over 45% combined—amplified losses from semiconductor sector concerns. Renewed worries about AI investment sustainability and Chinese DRAM competition triggered foreign selling and a KOSPI drop exceeding 5% on October 13, pushing EWY below $170 after trading near $220 earlier in the year. Traders are monitoring upcoming U.S. CPI data and FOMC communications for signals on global risk appetite and monetary policy, which historically influence flows into high-beta emerging-market equities like EWY.