Korean ETFs Gain Popularity Overseas as Leverage ETP Regulations Tighten
Exchange-traded funds (ETFs) investing in Korean companies are increasingly being listed on major international markets such as Hong Kong and the United States. The surge in demand from overseas investors, fueled by the boom in the AI semiconductor sector and renewed interest in major Korean tech stocks like Samsung Electronics and SK Hynix, is contributing to the proliferation of such products. Notably, Hong Kong’s CSOP Asset Management plans to list a KOSPI200-tracking ETF on the Hong Kong Stock Exchange later this year, providing global investors greater access to Korean equities.
Separately, from the 22nd, a minimum deposit requirement will be introduced for overseas-listed leveraged exchange-traded products (ETPs) in Korea. Domestic investors seeking to access these leveraged products will need to maintain a minimum deposit of 10 million KRW, with foreign currency assets also qualifying towards this amount. Existing investors will be exempt from the new regulation, but the threshold is expected to raise the entry barrier for new participants. The measure aims to mitigate risks associated with the rapid growth in leveraged ETP trading and enhance investor protection.
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Foreign Small Investors Flock to Buy KOSPI… More Korean ETFs to be ReleasedForeign small investors flock to buy KOSPI… More Korean ETFs to be released. ETF trend analysis suggests listing of KOSPI200 ETFs in Hong Kong. Samsung Electronics and Micron Technology hold 50% of DRAM market, popular in the U.S. Expected release of leveraged products following SK Hynix ADR listing.