NewTimeSpace News:As the Middle East conflict persists, market concerns are mounting over potential spillover effects on the semiconductor industry and chip manufacturers, with SK Hynix and Samsung Electronics bearing the brunt of the impact. Since the outbreak of hostilities, the combined market capitalization of the two companies has evaporated by over $200 billion.

On March 13, South Korea's KOSPI Index plunged more than 3% at the open, with SK Hynix and Samsung Electronics each dropping over 4%.Xtrackers MSCI Korea UCITS ETF(02848.HK) opened lower and fluctuated throughout the session, falling over 2.5% in afternoon trading.

According to HKEX data,Xtrackers MSCI Korea UCITS ETF(02848.HK) tracks the MSCI Korea 20/35 Custom Index—a "capped index" designed by MSCI to comply with EU UCITS fund regulatory requirements. The index maintains representation and investability across South Korea's large- and mid-cap equity market while mitigating single-company concentration risk through hard weight caps. Major constituents include SK Hynix, Samsung Electronics, NAVER, Hyundai Motor, and Shinhan Financial Group, all among the top ten holdings.

Bank of Korea data reveals that foreign investors net sold $13.5 billion of South Korean equities in February, marking an all-time record, driven primarily by concerns over AI bubble risks and profit-taking activities. Although specific foreign flows for March 12 remain undisclosed, the preceding massive outflow trend continues to exert sustained pressure on the market.

The South Korean government stated that should the Middle East crisis trigger a surge in global fuel prices and push up electricity costs, it will consider providing additional energy subsidy vouchers to vulnerable households. If oil prices remain elevated and liquefied natural gas supplies are disrupted, South Korea is also prepared to ramp up nuclear and coal-fired power generation.

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