South Korea’s EWY ETF Holds Steady as Global Tech Rout Spares Asia’s Quiet Giant—for Now

While the Nasdaq has been busy setting off fire alarms with back-to-back 1% plunges and nearly $1 trillion in tech market cap vaporized, South Korea’s EWY ETF has been the market equivalent of a monk in meditation. At $120.28, the iShares MSCI South Korea ETF (EWY) is exactly where it started, refusing to flinch as global tech stocks get trampled by AI cost anxiety and valuation panic. In a week when everyone expected Asia to catch the contagion, Korea’s flagship ETF just shrugged and kept scrolling.

The facts are as stark as they are surprising. US tech stocks have been in freefall, with the Nasdaq tumbling 350 points and the CNN Money Fear & Greed Index stuck in the “Fear” zone. European markets have wobbled, and even Asian tech darlings have seen some bruising. Yet EWY is flat, trading at $120.28, with intraday volatility barely registering on the Richter scale. No panic, no euphoria. Just a market that seems content to wait out the storm.

What’s behind this eerie calm? For starters, South Korea’s equity market has always marched to its own beat. While Samsung and SK Hynix are global names, the broader Korean market is less exposed to the speculative AI arms race that’s been whipsawing US tech. In fact, the Korean government has been quietly nudging its tech sector toward more sustainable growth, with less emphasis on moonshot projects and more focus on cash flow and dividends. The result: a market that’s less prone to the kind of valuation blowups currently haunting Silicon Valley.

But there’s more to the story. South Korea’s macro backdrop has been quietly improving. The won has stabilized, inflation is trending lower, and the Bank of Korea has signaled that it’s in no rush to tighten policy. Corporate earnings have held up better than expected, with export data showing resilience in the face of global headwinds. And while retail investors have been net sellers, institutional flows have provided a steady bid under the market.

Historical comparisons are instructive. During past global tech selloffs, the Korean market has often lagged the initial move, only to catch up later once the dust settles. But this time, the setup is different. Valuations are more reasonable, balance sheets are stronger, and the government has a clear incentive to avoid the kind of boom-bust cycles that have plagued other tech-heavy markets. Cross-asset correlations have also broken down, with Korean equities decoupling from both US tech and Chinese internet stocks.

Of course, this doesn’t mean EWY is immune to global shocks. If the tech rout deepens or spills over into broader risk assets, Korea could get dragged into the vortex. But for now, the market is sending a clear message: panic is optional, not mandatory.

Strykr Watch

Technically, EWY is in a holding pattern. The ETF is pinned at $120.28, with support at $118.50 and resistance at $122.00. The 50-day moving average is flat, and RSI is hovering around 52, neither overbought nor oversold. Volume is light, suggesting that most traders are content to watch from the sidelines rather than take aggressive positions.

From a macro perspective, the Korean won remains stable against the dollar, trading in a tight range. Export data is worth watching, as any surprise weakness could be the catalyst that finally shakes EWY out of its slumber. For now, the path of least resistance is sideways, but a break above $122.00 could trigger a momentum chase, while a drop below $118.50 would open the door to a deeper correction.

Strykr Pulse 65/100. Sentiment is neutral to slightly bullish, with technicals showing no clear trend but macro fundamentals providing support. Threat Level 3/5. The risk of a delayed reaction to the global tech rout remains, but for now, the market is calm.

The main risk is that Korea’s decoupling is a mirage. If US tech stocks continue to slide, the gravitational pull could eventually drag EWY lower, especially if institutional flows reverse. There’s also the risk of a macro shock, be it a surprise rate hike from the Bank of Korea, a sudden spike in inflation, or geopolitical tensions with North Korea. Any of these could quickly shatter the market’s composure.

On the opportunity side, traders looking for relative value could do worse than EWY. The ETF offers exposure to a market with solid fundamentals, reasonable valuations, and a government that’s actively managing downside risk. For those willing to bet on a global tech rebound, EWY could be a high-beta play once sentiment turns. Alternatively, a break above $122.00 could be the signal to pile in for a momentum trade, with stops just below $120.00 to manage risk.

Strykr Take

South Korea’s EWY ETF is the eye of the storm in a world of tech turmoil. The market’s refusal to panic is either a sign of underlying strength or the calm before the storm. Either way, traders should keep it on their radar. If global tech stabilizes, EWY could be an early winner. If not, be ready to move fast when the calm finally breaks.

datePublished: 2026-02-05 10:45 UTC