The world’s largest asset manager highlights Korea’s tech supply chain strength
Black Lock headquarters in the U.S. (Photo: BusinessKorea DB)
BlackRock, the world’s largest asset management firm, has presented a positive outlook on the Korean stock market, citing the expansion of demand for artificial intelligence (AI) semiconductors.
In a report on April 16, BlackRock announced that it has upgraded its investment stance on U.S. and emerging market stocks to ‘overweight’. It particularly pointed out that the Korean stock market is a key factor in its expansion into emerging markets.
Wei Li, BlackRock’s Global Chief Investment Strategist (CIO), said, “Korea is one of the main reasons for our overweight stance on emerging markets,” and “it is showing strong momentum, especially in the technology supply chain centered on semiconductors.” He mentioned, “Korea is showing remarkable growth as a member of the technology supply chain ecosystem,” and “we are definitely positive on the Korean market.”
BlackRock assessed that the global expansion of AI investment is leading to improved corporate earnings. The firm’s analysis suggests that AI-related investment is also the backdrop for the upward revision of the 2026 corporate earnings outlook, despite the war in the Middle East.
The Korean stock market, in particular, is described as a direct beneficiary of the increased demand for AI hardware, thanks to its semiconductor-focused industrial structure. The KOSPI experienced significant volatility due to the war in the Middle East but has recently recovered most of its losses. It has risen approximately 47% this year, recording a performance that outpaces major global markets.
While there are concerns that the structure centered on large-cap semiconductor stocks could increase market concentration and become a risk, BlackRock assessed this as a natural phenomenon occurring during a technological transition. CIO Li said, “Many investors see concentration as a problem, but during a technological innovation period, it is closer to a characteristic of the environment,” and “for now, we are not greatly concerned.”
This assessment by BlackRock can be seen as reflecting changes in global capital flows. As the AI investment cycle enters full swing, the investment weight in hardware supply chains, such as semiconductors and data centers, is expanding, with analysis indicating that Korea is establishing itself as a key pillar.
As long as AI demand continues, if the trend of earnings improvement in the Korean stock market persists, the move by global asset management firms to increase their weighting could lead to additional capital inflows.
Yoon Young-sil
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