The TR Korea (02848) ETF saw an intraday surge exceeding 2%. As of the latest update, it is up 2.11%, trading at HK$1,936.5 with a turnover of HK$1.2549 million.
Catalyst for the Move
The upward movement follows reports that South Korea is planning to establish a "Future Response Fund." During a meeting between the government and the ruling Democratic Party on July 5, President Yoon Suk Yeol's chief secretary, Kang Hoon-sik, stated that South Korea should not "squander" the additional tax revenue generated by the semiconductor boom. The Yoon administration intends to use this fund to finance major national investment projects and bolster the country's long-term competitiveness.
Fund Objectives
Kang Hoon-sik indicated that the fund will support the government's recently proposed three major "mega projects." Its goals are to cultivate new growth engines for the economy, address the so-called "K-shaped" economic divergence phenomenon, and provide support for housing, entrepreneurship, and employment for people in their 20s and 30s.
Broader Strategic Context
This initiative follows President Yoon's recent announcement of three key national industrial projects focused on semiconductors, physical AI, and data centers. These projects, supported by Samsung Electronics, SK Hynix, and government agencies, involve a planned total investment of hundreds of billions of dollars. The overarching strategy aims to strengthen South Korea's leadership in chip and AI-related industries while simultaneously stimulating economic growth in regions outside the greater Seoul metropolitan area.
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