Although domestic companies currently lead the AI race, China and South Korea have also shown strong efforts both on the corporate and state level.
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In a feature published on Tuesday of this week, we discussed the rapid developments of artificial intelligence (AI) in the United States and how corporate initiatives in AI investment have significantly boosted equity returns. While domestic equities remain the strongest performing asset class, it is important not to overlook the global ripple effects of AI-driven growth. Markets outside of the U.S., particularly in Asia, have also seen notable gains as the countries ramp up their AI strategies. China and South Korea, in particular, have demonstrated strong performance in AI-related areas in 2025, with both state-led and corporate initiatives driving billions of dollars into AI development.
To better understand the scale and diversity of these AI initiatives, the chart below highlights some of the most impactful programs and investments launched by China and South Korea in 2025. These range from state-backed venture funds to major corporate pledges from some of the largest companies. The initiatives span multiple sectors such as semiconductors, generative AI and robotics, and autonomous driving. These initiatives spanning multiple industries could benefit investors looking to get a diversified exposure in these markets.
The iShares MSCI South Korea ETF (EWY) completed a triple top break earlier this month at $75 to mark its second consecutive buy signal. EWY is a diversified fund, but has a large weight in Tech/AI related companies like Samsung (SMSN-LN), as evidenced by its holdings. The fund has shown tremendous improvement this year as it is up over 56% year-to-date. EWY maintains a fund score of 5.89 after reversing back to a buy signal against the market earlier this week and maintains a positive score direction of 4.71. Additionally, the fund offers a yield of 1.79. The fund sits in overbought territory so wait for a pullback/price normalization before considering. Previous resistance can act as support, so initial support may be seen at $74 with additional support at $71.
The KraneShares CSI China Internet ETF (KWEB) completed a double top break earlier this month at $39.50 to mark its fourth consecutive buy signal. The fund focuses on the top Chinese internet companies, holding a large weight in companies like Tencent Holdings (TCEHY), Alibaba (BABA), & PDD (PDD). KWEB has a near perfect fund score of 5.96 and a strong score direction of 3.16. Additionally, the fund offers an attractive yield of over 2.7 %. The weekly OBOS indicates that the stock is in overbought territory, so wait for the 10-week trading band to normalize before considering. Initial support is at $37.50, with additional support at $34.50.
