Rising ETF Delistings and Recovery of Shipbuilding ETFs
The ETF market has seen an increase in the number of delistings in the first quarter of this year. Eight ETFs were delisted, primarily because they failed to align with evolving market conditions and industry trends. ETFs with a trust principal below 5 billion KRW or an average daily trading value under 5 million KRW are subject to delisting, strengthening investor protection and maintaining market health. This highlights the need for investors to carefully evaluate ETF products before investing.
Meanwhile, a significant LNG carrier order from Qatar is spurring signs of a recovery in profitability for South Korean shipbuilders. Contracts initially won at low prices in 2020 are now benefiting from higher finalized contract prices, alleviating concerns over underpriced orders. As a result, shipbuilding-focused ETFs, especially those managed by Mirae Asset and KB, have bottomed out and are showing an upward trend. This development enhances the investment appeal of mid- to large-cap Korean shipbuilding and heavy industry ETFs.
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