Korean ETF Market Surpasses 400 Trillion Won: Competition, Lack of Product Differentiation, and Strategic Shifts
South Korea’s ETF market has exceeded 400 trillion won, reaching a record high. Large-scale IPOs are now significantly affecting early stock price trends and market liquidity through their potential inclusion in major indices, leading the stock exchange to revise special index inclusion requirements for newly listed stocks. However, there are pressing concerns over a lack of product differentiation, as similar-themes and structurally repetitive ETFs proliferate, resulting in limited options for investors and intensified price-based competition among issuers.
Kiwoom Asset Management’s CEO, Kim Ki-hyun, is targeting the retirement pension market after his reappointment, seeking to regain market share through new retirement-focused ETF products such as the Samsung Electronics & SK Hynix Bond Mix 50. Synergy with affiliated firms is expected to boost competitiveness. Meanwhile, Mirae Asset and KB Asset Management are proactively strengthening their active ETF segments by establishing dedicated teams and recruiting external talent. This shift comes as regulatory constraints on active ETFs are relaxed in the Korean capital market, prompting asset managers to seek new competitive advantages.
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