Franklin FTSE South Korea ETF trades at discount despite rising earnings growth, driven by AI demand in memory sector.

The Franklin FTSE South Korea ETF (FLKR) is trading at a significant discount, down 18% from June highs, even though earnings growth expectations have increased. This ETF is heavily concentrated, with nearly 50% exposure to memory chip giants SK Hynix and Samsung, making it more of a play on the memory cycle than the broader Korean market. Historically, FLKR has traded at a discount due to fears around the memory market's cyclicality, especially the HBM supercycle. However, the current AI-driven demand for high-bandwidth memory (HBM) suggests a structural shift that could reduce traditional risks, leading the author to rate FLKR as a buy opportunity despite its low valuation relative to the KOSPI's 10-year average.

FLKR is trading at USD 61.19 with a 1-day gain of 2.26% as of Sep 25, 2026 18:41 WIB on Pluang, showing renewed investor interest despite its 18% drop from June highs mentioned in the article. The ETF's market cap stands at $1.71 billion with a 52-week range between $26.55 and $72.25, highlighting its volatility. On Pluang, all order activity is currently buys, reflecting a strong demand for this South Korea-focused ETF amid the memory chip sector's evolving dynamics.