Rise of South Korean High-Dividend ETFs and Challenges
Rise of South Korean High-Dividend ETFs and Challenges
The new government's emphasis on dividend expansion and shareholder return policies has brought renewed attention to high-dividend Exchange-Traded Funds (ETFs) in South Korea. Consequently, asset managers like Hanwha Asset Management and Kiwoom Asset Management have launched new high-dividend products, with Shinhan Asset Management planning to introduce a new offering soon. These products uniquely consider not only dividends but also other shareholder return strategies like share buybacks. However, there have been observations of fund outflows from existing high-dividend ETFs, sparking concerns that the market may already be saturated. In response, Shinhan Asset Management has launched the 'SOL Korea High-Dividend ETF' to maximize actual dividend yields. The fund aims to offer stable revenue through benefits like tax separation and increased investment in tax-exempt, dividend-reducing companies. Notably in 2025, funds flowing into South Korean dividend strategy ETFs exceeded those in the United States, driven by strengthened shareholder return policies and tax benefit changes. The performance of Korean dividend stocks also played a role, attracting investors with high dividend yields. As a result, the popularity of South Korean high-dividend ETFs is expected to continue this trend.
Related News
조선일보21 hours ago
Controversy Grows Over 'End of Dividend Stocks'... High Dividend ETFs Set to Launch En Masse - Chosun IlboAs the controversy over the 'end of dividend stocks' grows, high dividend ETFs are being launched en masse. The new government emphasizes the expansion of dividends and shareholder returns for listed companies, which draws attention to dividend stocks, leading to the consecutive launch of high-dividend ETFs. Asset management companies are quickly producing related products to keep up with the rapidly changing trend.
조선일보21 hours ago
Now It's Dividend Time All Year Round, A New Popular Investment Strategy - Chosun IlboNow it's dividend time all year round, a new popular investment strategy. The established equation of 'dividends=America' is broken. Now high-yield dividends in Korea are the trend. Dividend investment, which generates a stable cash flow, is a dream for many investors. Until now, the epitome of dividend investment was the high-dividend ETFs in the U.S. However
조선일보22 hours ago
Selling the US, Buying Korea.. Money is Flocking to 'This Stock' with High DividendsSelling the US, Buying Korea.. Money is flocking to this stock with high dividends. The conventional wisdom of high dividends equating to the US has been overturned. Now, Korea's high dividends are in vogue. Dividend investments, which create a stable cash flow, are one of the investors' goals. Previously, the epitome of dividend investment was the US high-dividend ETFs.