Domestic Stock ETFs Outpace Overseas ETFs amid Robust Market Growth
This year, domestic stock ETFs in South Korea have demonstrated remarkable growth, significantly surpassing overseas ETFs. The net asset value of domestic stock ETFs reached KRW 158.7 trillion, accounting for a substantial portion of the total ETF market size of KRW 378.9 trillion. Key drivers behind this surge include sharp increases in the KOSPI and KOSDAQ indices as well as heightened interest in sectors such as semiconductors. In contrast, overseas stock ETFs attracted only KRW 5.7 trillion in new inflows.
Geopolitical risks, notably the recent Middle East conflict, have increased market volatility, leading financial institutions to adopt a net selling stance and somewhat slowing overall growth. Nevertheless, retail investors continue to actively purchase domestic stock ETFs, and a positive long-term outlook for the ETF market persists. Asset management companies are launching new ETF products in response to growing investor demand, and trading volumes have risen sharply. Despite short-term volatility, industry experts expect the growth trajectory of the domestic ETF market to continue.
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